After three consecutive months of falling housing prices, it now shows Danske Bank's House Price Indicator a cautious turnaround in price developments. In seasonally adjusted terms, the House Price Indicator rose by 0.8 percent from April to May and the increase was broad across all size segments. The number of transactions fell marginally compared to April in seasonally adjusted terms but is at a normal level for the month of May.
Light at the end of the tunnel gloomy start to the year
Housing prices appear to have bottomed out and there are prospects for rising housing prices in the future.. The latest consumer confidence survey from the National Institute of Economic Research showed a change for the better in households' view of future economic developments. Combined with the stock market's recovery and the stabilization of the uncertain situation, this creates the conditions for the housing market to find new force. Danske Bank The housing price indicator that measures housing prices in the municipality of Stockholm can be seen as a leading indicator for the country as a whole and there is now much evidence that the bottom may have been reached.
Comment from Susanne Spector, Chief Economist Danish Bank: "Uncertainty is still high, but there are green shoots for housing prices again. The Riksbank's signals of a potentially easier monetary policy combined with more stable stock market development appear to have supported housing prices in May."
On June 4th, it will be published Nordic Outlook with an updated forecast for house prices.
*Danske Bank The housing price indicator refers to the price trend for tenant-owned apartments within the Municipality of Stockholm and is updated at the end of each month based on published final prices from the housing website Hemnet.
Danske Bank's House Price Indicator is used as an early indicator of housing prices during the current month. Since the development of housing prices in Sweden broadly follows the development in Stockholm is it a useful indicator of housing price developments as a whole.
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