Swedish housing market uncertainty intensifies as houses sell at snail pace


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Tuesday, 23 August 2011
The recent turmoil in world markets may is being accounted as a factor that might also affect the interest in newly constructed homes in Sweden.

In recent weeks there have been large falls in global stock markets and is now approaching autumn, a time when many people choose to change houses in Sweden. How the stock market turmoil has impacted the buyers interested in newly constructed homes will be determined soon.
But two construction companies, NCC and Skanska say it is harder to sell new apartments and houses.
Peter W�gstr�m is CEO of NCC told radio Sweden that: “It takes a little longer to sell, we have had an increase in interest rates, mortgage loan ceiling has been introduced and now turmoil in the markets. We'll see how it unfolds.”

The latest figures from brokerage statistics showed unchanged prices of homes during May, June, July and 4 percent lower prices for condominiums in the country.

NCC presented its quarterly today which shows more home were constructed now than a year ago but among them, a larger proportion remain unsold. As of last June, it was less than half, 47 percent of the houses and apartments that NCC sold in Sweden.

For competitor Skanska, the corresponding figure was 63 percent. Skanska writes in its quarterly report that the uncertainty in the market had increased. According to the company’s press officer Edward Lind, buying a newly built home, used to take long before, maybe a year before. But now customers are waiting longer and are subscribing and taking long to about six months or a few months before closing a deal.

But construction companies seem to have learned something from the crisis a few years ago, when customers suddenly could not afford to buy homes that they subscribed for. Now, customers are offered various forms of insurance.

NCC has also developed new ways to build, - technical code name P303 made up of conceals smaller houses, terraced houses to attract an audience with smaller wallets:

“Its cheaper housing, they are cheaper to produce and easier to build. We have built our first such object in Kungsbacka. We are developing more products in the same line of building,” said CEO Peter W�gstr�m

Building Company JM maintaining a silent period before its quarterly report and has not tried to speak despite all sorts of things done by the press to forced it to speak.
By Team

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