RT.com
22 Nov 2022, 11:43 GMT+10
Soaring power costs have been pushing Sweden's house prices lower
Sweden's home-price decline accelerated in October, with the Nordic country gripped by the most severe housing slump in three decades, Bloomberg reported on Monday, citing industry data.
Home prices in the country plunged by about 14% from a peak earlier this year, according to Valueguard, which compiles the data. Prices have reportedly slid for seven straight months, as households are being squeezed by the rising cost of living.
This shows what may lie ahead for many other developed economies, Bloomberg wrote, noting that the downturn in Sweden was fueled by soaring inflation and central bank moves to curb price increases.
The report indicated that the downtrend is unusual in a country where previous corrections have been shallow and short-lived, and many young home buyers have never experienced a housing market crash.
"While housing markets are cooling across the world with fewer transactions taking place, price declines have yet to begin in a number of countries," it wrote, specifying that home prices in Canada are now down 10% from the peak and declines of as much as 20% are forecast for countries including the US, the UK and New Zealand.
"A lot of homes are being sold at levels around the asking price, and bidding wars are rare," chief executive of Lansforsakringar Fastighetsformedling Marcus Svanberg said in a statement. "We don't expect to see a real recovery until spring next year at the earliest."
Valueguard data showed the HOX Sweden housing-price index decreased 3% in October from the previous month in a steepest decline since June. The drop was reportedly led by detached houses, which are particularly vulnerable as electricity prices soar.
The media outlet also said that most forecasters expect the decline to continue, and "the current trajectory indicates that the outsized gains in housing prices achieved during the pandemic could be erased by early next year."
For more stories on economy & finance visit RT's business section
(RT.com)
Get a daily dose of Orlando Echo news through our daily email, its complimentary and keeps you fully up to date with world and business news as well.
Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Orlando Echo.
More InformationIn the past month alone, 23 Israeli soldiers have been killed in Gaza—three more than the number of remaining living hostages held...
LONDON, U.K.: At least 13 people are believed to have taken their own lives as a result of the U.K.'s Post Office scandal, in which...
WASHINGTON, D.C.: Travelers at U.S. airports will no longer need to remove their shoes during security screenings, Department of Homeland...
WASHINGTON, D.C.: An elaborate impersonation scheme involving artificial intelligence targeted senior U.S. and foreign officials in...
SLUBICE, Poland: Poland reinstated border controls with Germany and Lithuania on July 7, following Germany's earlier reintroduction...
WASHINGTON, D.C.: After months of warnings from former federal officials and weather experts, the deadly flash floods that struck the...
WASHINGTON, D.C.: After months of warnings from former federal officials and weather experts, the deadly flash floods that struck the...
(Photo credit: David Butler II-Imagn Images) Boston Red Sox starting pitcher Hunter Dobbins exited Friday night's game against the...
(Photo credit: Steve Roberts-Imagn Images) Nashville SC faces one of its biggest challenges to its club-record unbeaten streak when...
(Photo credit: Jim Dedmon-Imagn Images) Orlando City will be without their starting goalkeeper and their captain when they host a...
(Photo credit: Jim Rassol-Imagn Images) The San Jose Sharks signed free agent forward Jeff Skinner to a one-year deal worth $3 million,...
(Photo credit: Brad Penner-Imagn Images) New York Yankees left-hander Carlos Rodon was named to the American League All-Star team...