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Swedish house prices fallen much larger than what the data show

Tuesday, 29 November 2011
Swedish house prices are falling faster and more than official data show. Housing prices in Stockholm for example have fallen much more than what official statistics indicate.

Experts have looked at the market and have determined that what official data say does not reflect the reality on the ground.
According Swedish Real  statistic have shown that house prices in Stockholm fell by 4 percent over the last six months and two percent in the last twelve months. At the same time, it is reported that housing prices declined by 3 percent in six months.

But the about presentation has been countered by experts who claim that real price drop in Sweden is much larger, claiming several brokers and independent real estate appraiser who the media such the Swedish business daily Dagens Industri spoke to.

"I think prices have gone down ten per cent in Stockholm this year. I think that is very, very close to the truth, "said Erik Olsson, CEO of Erik Olsson Property to Swedish business daily Dagens Industri.

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Anders Lewn, brokers on Swedish Property association in Brommer, also hold the view and estimates that house prices have declined by about ten percent this year. Those with property rights may have seen a dropped slightly more.

One reason for the difference between official statistics and the experts' assessment is that the Broker Statistics reports an average of all transactions during a given period of time. The higher the proportion of expensive housing, the higher the average price.

"There are objects that have not been sold and are not included in the statistics. If they had been sold ten the statistics should have showed a larger decline, "said Anders Lewn.

The fall has been all over the greater cities  and both villas and condominiums, although there are variations between different areas and types of objects.
"The apartments that have the right location, the correct fee and are in the right condition are still good. But they are not as high as they did last spring, "said Anna Bobjer, brokers on the Swedish Property in Brommer.

Despite the fall, a record supply of housing has been out there for sale. That business is delayed is due not only to discerning buyers. "It's probably especially sellers who think they get low price offers right now, "said Anders Lewn.

Several brokers said that it has become common for buyers to puts house in underbidding rates, as the prices went down, although that is not described as a big problem. Erik Olsson connects the price decline has to do with the debt crisis and the financial turmoil in the global economy.
On the whole Swedish house prices are too over inflated and house are too over valued. It looks like buyers just can’t afford 125 year of paying mortgages.
By Scancomarkse Team




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