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Swedish house prices tipped to fall even moreThursday, 01 December 2011
Condominium prices in Sweden are getting lower towards the end of this year than it was predicted, say, in the middle of this year.
This has made 31 percent of respondents in a survey conducted by the polling firm Skop to conclude that house prices in this country will fall even more. However there are still 30 percent of those who believe that prices will rise.
AdvertisementThe survey, conducted between October and November in which 1,000 people were question about their perception about the Swedish housing market.
Compared with the previous surveys, the proportion which believe in lower house prices in a year dropped from 34 percent.
Regarding house prices, the same proportion, 29 percent expects, that there would be falling or rising prices.
We are more interested in the behaviour of the Swedish house prices because it is on area that has the characteristics to bring down this glistering economy. Houses here have been classified as over valued as such the prices tied t the house doesn’t reflect the average real base value. Because the house prices are over valued, it take too long for people to repay their montages recently determined to take 125 years to repay mortgages.
The fact that house prices are growing faster than earnings, any small effect in the economy – were people find it hard to pay their mortgages it will drag the economy down just as seen now in Denmark.
By Scancomark.se Team
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