“For the fourth quarter of 2022, the combined housing index is 96, which means that those who buy a home need to spend an average of 31 percent of their disposable income on housing expenses,” writes Swedbank in a press release.
In the third quarter of 2022, Swedbank’s housing index was 99.7 according to corrected figures, and during the financial crisis it was as low as 101.
An index level of 100 reflects a housing cost that is 30 percent of disposable income.
For the single-family house category, the housing index fell in the fourth quarter to 95, from 98 the previous quarter. For condominiums, there was a decline to 99, from 104.
According to Swedbank and the savings banks’ private economist Arturo Arques, the development means that the probability has increased that more households will have problems paying for housing.
“Despite lower housing prices, housing costs increased, mainly due to rising mortgage interest rates and higher electricity and heating costs,” writes Arques in a commentary.