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Andreas Wallström, Research Analyst at Nordea Markets, notes that Sweden’s home prices declined  by 0.5% on the month (seasonally adjusted) according to data from HOX Valueguard, which was somewhat lower than Nordea’s forecast of unchanged prices.

Key Quotes

“Prices were down by 4.9% over the year, while our forecast at -4.5% y/y. Prices decreased more in Stockholm, where apartment prices fell by 1.0% on the month (seasonally adjusted), and decreased by -8.0% over the year.”

“Note that  transactions are few  in July which means that today ´s figures do not necessarily provide a good indicator of the underlying trend. We must probably wait a few weeks into September to get a better gauge of the price trend. The continued high supply, especially for newly built homes, remains a risk factor for a continued fall in home prices.”

We continue to see stable prices ahead  but with  downside risks.”