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Swedish house prices rose last year - but by how much.

Tuesday, 15 January 2013
Swedish house prices rose last year with the largest increase in the major cities as once more it became more expensive to buy a home in Sweden last year. The prices of condominiums increased by eight percent in 2012 and other houses - detached and semi-detaches increased by two percent.

Despite all the gloomy news reported about the Swedish house prices last year, prices did rose maintaining the view that although the Swedish houses, said to be over valued, its prices will not fall any time soon. One driver for this is the growing scarcity and housing shortages, as very few houses are bung built.

Some authorities had predicted that house prices in places such as Stockholm will increase given the shortages and increase immigration influx. The consensus was that house prices in Stockholm should even be higher than what they are today - given the strong immigration and low house construction in greater Stockholm area, experts and brokers claim

This also comes as there are also more vocal voices reacting to the growing housing hitting the greater Stockholm area. One visible evidence is the growing overcrowding and it has been determined that about 200 000 inhabitants will loose their chance of getting a home in the capital in the coming decades if the current low level of house building in maintained according to Maria Pleiborn, demographer at consultancy firm WSP.

After a fall in prices of condominiums in the 2011s, there is the strong view that prices went up on the full year of 2012, despite the financial turmoil, great slow bid and longer sales times in the housing market, according to Peeter Pütsep, CEO of Swedish real estate association Svensk Fastighetsförmedling.

Most noticeable rise in prices were observed in Stockholm and Gothenburg. In Greater Gothenburg, prices have risen by as much as ten percent in the last twelve months. In Stockholm, the increase was six percent.

The price increase of houses (detached and semi detached) are more modest, across the country as it rose two percent in 2012. In Greater Stockholm, house prices rose by three per cent and in Greater Gothenburg four percent.

In December, the prices for both condominiums and villas went up by one percent. But the Swedish real estate association believe that it is not a sign of continued decline.

"If there are no major changes in our business environment or a dramatic increase in unemployment in Sweden, we believe that 2013 will remind a lot like 2012. That is to say housing prices will go a little bit up and down, longer sales times, but with regional differences."
by Scancomark.com Team

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