Sweden is facing its ‘day of reckoning’ as house price plummet

Sweden's house prices have risen fairly steadily over the last decade, but they are now in freefall.

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The fall in property prices is not surprising given the “dysfunctional” nature of the market, according to Stefan Ingves, the former governor of the central bank Riksbank.

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Several economists predict a 20% decline in property prices from peak to trough.

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Sweden's central bank initiated an aggressive interest rate hike cycle in 2022, which rippled through the asset market.

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Due to Covid- 19 pandemic, price of house rise across Europe and Sweden as preference was given to do work from home.

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The demand of property skyrocketed 30% as compared to pre-pandemic in January 2020.

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Currently, the prices are falling drastically

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