Swedish home prices resume climb in first month of the year

HOUSING prices in Sweden broke their declining trend as buyers returned to the market in January, according to data from state-owned lender SBAB. 

Statistics from the bank’s property listings site Booli showed home prices rose 3 per cent in the first month of the year from December. While the reading may indicate a stabilisation following recent drops, SBAB chief economist Robert Boije said the data should be viewed with caution. 

“Prices usually jump in January,” he said in a statement. “This year, a pent-up need to change homes after a long period of low turnover may also have played a part.” 

In non-seasonally adjusted terms, prices rose by 0.7 per cent.

A tightening campaign launched almost two years ago by the Riksbank has weighed heavily on the Swedish housing market, and prices in January were 13 per cent lower than at the peak in April 2022. While the central bank’s pivot toward easing moves this week may spur optimism about a recovery, SBAB’s Boije said that market conditions are far from optimal. 

“Supply is much larger than usual, the time it takes to complete transactions remains long, and the number of bidders is significantly lower than usual,” he said. “Those factors don’t speak in favour of any significant rise in housing prices going forward.” BLOOMBERG