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.
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.
Several economists predict a 20% decline in property prices from peak to trough.
Sweden's central bank initiated an aggressive interest rate hike cycle in 2022, which rippled through the asset market.
Due to Covid- 19 pandemic, price of house rise across Europe and Sweden as preference was given to do work from home.
The demand of property skyrocketed 30% as compared to pre-pandemic in January 2020.
Currently, the prices are falling drastically
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