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Swedish real estate brokers track slightly falling sale numbers blamed on banks and mediaThursday, 08 December 2011
Restrictive bank borrowing and negative media reports is reported to have contributed to a more slow – moving housing market, according to Swedish real estate agents association who now has added to the believe that there is slight decreasing house prices in the near future.
AdvertisementAccording to a survey, responded by 1,800 real estate agents, 54 percent today believe that here will be a decline in Swedish house prices. However, it is slightly less than the survey conducted in September, which then 58 percent predicted a fall in prices. Similar assessments are also given by brokers for the prices of condominiums. More than half of the brokers think that the supply of houses will fall slightly.
Media reporting and the banks' restrictive lending has helped buyers and sellers to become more worried and have been more cautious in approaching the sector according to Claudia Wörmann, analyst at the Swedish real estate brokerage community.
One issue also is the memory of the 1990s to the Swedish real estate sector which collapsed.
Reports in the media, and the banks' restrictive lending and the general unrest in the economies around Sweden such as the euro crisis is affecting the housing market, believed estate agents.
In the case of banks, the main rule of 15 percent down payment, has affected most people. The rule leads to restrictions and exclude whole groups from the market. Several banks also recommend their clients to sell first and then buy, even if the customer wants to do the opposite. It reinforces inertia in the housing market, according to the Swedish Real Estate Agents.
By scancomark.se Team
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