In Sweden, apartments and houses rose in price by 2% in August 2024 compared to July. House prices have risen by about 8% over the year, but they have yet to recover from the 2022 drop that was caused by higher interest rates.
The current rise in prices occurred after the base mortgage rate was reduced from a peak of 4% to 3.5%. This made loans more affordable and influenced demand.
"It will be interesting to see what happens, as Riksbank cut interest rates for the second time and announced further cuts before the end of the year," said Robert Boijer, chief economist at SBAB Bank.
Source: Bloomberg
