Swedish households’ expectations of housing prices plummet in the strongest case since the beginning of the pandemic, SEB’s survey shows.
Households are increasingly pessimistic about developments in the housing market. This is shown by SEB’s housing price indicator, which goes from plus 18 in May to minus 16 in June, a race with 34 units.
In June last year, the housing price indicator was plus 62.
“Households’ house price expectations show the sharpest fall since the beginning of the pandemic, which is a result of an increasingly gloomy economic everyday life now catching up,” says SEB’s private economist Américo Fernández in a press release.
31 percent of households believe in rising prices in the coming year. This is a decrease of 11 percentage points from last month. Nearly half believe instead that prices will fall. The case is the strongest since the beginning of the pandemic.
According to Américo Fernández, expectations during the pandemic turned upside down again after the Riksbank and the government supported the economy with crisis policy, but that the situation is now completely different.
“Households should not expect the same traction in the future, which could lead to further declines before the situation stabilizes,” he says.
SEB’s Housing Price Indicator is implemented by Demoskop and is based on web interviews with 1,000 people.