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Swedish house prices continues to fallTuesday, 15 November 2011
Swedish house prices for those known as Villas have fallen by 3 percent in three months. Right now there are a record number of items in the market which means that demand in sure outstripping supply or those interests in the purchase of such houses has constricted. This because the number of homes sold has declined sharply.
In the past three months house prices have fallen by 3 percent compared to the period May-July, new figures from real estate data, Mäklarstatistik show.
In Stockholm, the house prices declined by 2 percent, while they fell by 3 and 5 per cent in Greater Gothenburg and Greater Malmö.
According to Peeter Pütsep of Swedish real estate association, house prices have been moving slightly downward for several months and it is reasonable to assess that this trend will continue.
AdvertisementCondominium prices on the flipside have increased by 1 percent in the past three months, thanks to increases outside of our cities. Prices have fallen in central Stockholm, Gothenburg and Malmo, according to the data from Mäklarstatistik.
"The development is extremely difficult to interpret at this time. It is very much about psychology "says Peeter Pütsep.
Reviews of the Swedish housing market show that there has been a sharp slowdown in the housing market, reminiscent of the fall of 2008. Then, the number of sales fell sharply, while capacity increased.
In October last year a total of 3633 houses were sold. Twelve months later the figure had dropped to 2749, a decrease of 24 percent. During the same period, sales of condominiums fell by 21 percent.
While the shops are fewer, there are a record number of items in the market. Last week there were 18,120 homes for sale on the Swedish biggest housing site Hemnet, which is an increase of 32 percent compared to same week last year. For this, the number of condominiums increased by 34 percent over the same period.
"There is a general concern about where the Swedish economy, world economy and the stock market is heading, "says Peeter Pütsep.
But Swedish house prices continue to remain astronomically high. Given that the Swedish housing market is said be over valued, and house prices are said to be over valued, no body on the other side will move a muscle and some people will find it a relief if the prices continue to fall unabated.
By Scancomark.se Team
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