Foto: Tomas Oneborg/TT.
Photo: Tomas Oneborg/TT.

Biggest price hike for housing in six years in 2015

"It is surprising that the prices continue to go up year after year"
2:44 min

Housing prices in Sweden continued to climb last year and rose on average by 16 percent for condos and 12 percent for homes, according to new figures by the real estate statistics company Svensk Mäklarstatistik.

Last year, Sweden saw the biggest price hike for housing since the financial crisis in 2009. In the two cities of Stockholm and Gothenburg, prices went up by an average of 18 percent, and housing prices in Malmö went up by 12 percent.

Per-Arne Sandegren, chief analyst at the real estate statistics company Svensk Mäklarstatistik, followed the market prices closely last year and expected the total increase to be high, but notes that housing prices continue to grow much faster than other goods.

"It is surprising that the housing prices continue to climb year after year, especially if you compare it to consumer price index," Sandegren says.

Sandegren says that aspects such as a low interest rates combined with a shortage of housing and a good economic climate make people more inclined to invest in real estate. He says that the talks about introducing an amortisation requirement, which would force people to pay off their mortgage faster, only had a minor effect on the market.

"It had a temporary effect, but most banks already have this kind of system in place so it did not have a big effect on the market," Sandegren tells Radio Sweden.

The average housing prices did, however, cool down a bit in December and Erik Olsson, the chair of the Swedish Association of Realtors, believes that this could be the start of a downward trend.

"I think Swedes have been a bit too optimistic about their economy. We see a small change in the figures already, and I believe that 2016 will continue in this direction," Olsson tells Swedish Radio News.

Olsson believes that the average housing prices will stagnate or drop by up to 5 percent in 2016.

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