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Persistent threats of jobs losses kill Swedish housing market

Tuesday, 20 November 2012
The increase uncertainty in the Swedish economy where there has been growth in jobs losses and threats of jobs losses in various companies and in different sectors is beginning to have a toll on the Swedish housing market.

A market which is already struggling with an over valued Swedish houses, on one hand and huge debts tied to the sector on the other side, is not in a good place right now.
On the other hand, though, if the Swedish minister of Finance, Anders Borg carried out any form of stimulus and the economy takes off, prices could start to rise again in two years times, according to Erik Olsson from the Swedish real estate brokerage organisation to the Swedish business daily, Dagens Industri.
swedish-real-estate

"Psychology is steering housing market today, and although the numbers of redundancies are not so many, it contributes to a concern, "said Erik Olsson to the paper.
The real estate brokerage firm in November was asking around about housing speculators' views on the housing market. Five percent believe in a slump in prices and 40 percent believe that the price will remain constant over the next 12 months. A third expect that prices will fall by less than 10 percent and only one percent believe prices will increase by more than 10 percent.

Most subdued housing market is found in Malmö according to as Erik Olsson, where sales are lengthy and t takes long for people to ask about a view.

Significantly better movement is seen in Gothenburg, where many homes are sold before the annual display. In Stockholm a stable price and market is assessed, especially for smaller homes. Some sales take a long time to be stroke.

Further, in the survey, four out of ten households expect that household finances will improve in the next 12 months, while every other estimates an unchanged economy - that is tough economy.
by Scancomark.com Team

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