Swedish Housing Bubble Pops As Stockholm Apartment Prices Crash Most Since June 2009

Even though Sweden’s property bubble is not the longest running (that accolade goes to Australia at 55 years), it is probably the world’s biggest with prices up roughly 6-fold since starting its meteoric rise in 1995.

Of course, as we noted last month when the SEB's housing price indicator, which measures the difference between those who believe prices will rise and those who expect them to drop, took its first substantial tumble, the era of the steadily inflating housing bubble in Stockholm may finally have come to an end.

Sweden

Now, it seems that the "hard data" is aligning with the "soft data" as Swedish home prices across the Nordic country posted their first decline since the spring of 2012, down 0.2% year-over-year and 2.9% sequentially.  Per Bloomberg:

The property market in the largest Nordic economy is rapidly cooling after years of price increases that were driven largely by housing shortages and ultra-low interest rates. Supply is now outstripping demand and stricter mortgage rules, as well as growing apprehension among households, are driving prices lower. The drop is being led by high-end apartments in Stockholm.

 

According to Maklarstatistik’s number, nationwide apartment prices fell a monthly 3 percent in November, adding to October’s 1 percent drop. House prices fell 1 percent in the month, after being unchanged in October. Apartment prices in greater Stockholm fell 3 percent in the month and were down 4 percent from a year earlier, the first such decline in almost six years.

Worse yet, the slump in Stockholm specifically is even more dramatic with apartment prices down 4.2% sequentially, the steepest since October 2008, and 6.0% year-over-year, the biggest June 2009.

Not surprisingly, the sudden pricing collapse has sparked a bit of a panic supply boost as sellers attempt to beat the bursting of the bubble.  Of course, we're sure this strategy will work out perfectly, as it always does, because nothing helps correct an over-supplied market like a massive flood of even more supply. 

Greater supply “has resulted in buyers having more to choose from and taking longer before buying,” Hans Flink, head of sales and business development at Maklarstatistik, said in a statement. “The sellers are therefore starting to adjust their prices to the tougher competition, which is pushing prices down somewhat.”

Luckily, Bloomberg was able to find at least one economist who dug up some "rather encouraging" signs amongst the wreckage...

But there may be glimmers of hope. Andreas Wallstrom, an economist at Nordea Bank AB in Stockholm, said data for the last few weeks from property-listings website Booli “are rather encouraging,” as they indicate that prices have leveled out since mid-November and up until the first week of December. Average prices per square meter have even increased somewhat in both Stockholm and in the country as a whole in that period, he said.

 

“Our tentative call for December is that home prices will stay unchanged compared to November,” Wallstrom said. “In all, we forecast relatively stable home prices from here. To see a sustained downturn in prices, it will likely require a change in households’ housing costs. As long as mortgage rates remain low, which we expect, it is difficult to see a marked decline.”

Of course, we remember some Bear Stearns analysts who saw similarly "rather encouraging" signs in the U.S. housing market back in 2008...

Comments

Tallest Skil Alessandro1987Rossi Fri, 12/15/2017 - 02:54 Permalink

Why the hell would anyone want to live in the rape capital of the fucking world? I don't just mean Stockholm, I mean the entire fucking country. Even after deporting all the nonwhites, Sweden will be empty in 40 years. There aren't enough Swedes left to keep the nation alive anymore. This is a proven mathematical certainty.

In reply to by Alessandro1987Rossi

Luc X. Ifer Ivan de beers Fri, 12/15/2017 - 03:56 Permalink

People get wrongly only the surface, twisted story. What really was scouted for is revealed only looking for a longer timeline. Sweden was the epitome of successful euro-Caucasian/white successful genuine social-democracy.
This was settling a very bad in the plain view example for the rest of world especially when everybody was pointing the finger at the collapsing pseudo-socialist Soviet left-fascist system. Capitalist oligarch certainly had a very good reason to not like it - socialism had to be proven everywhere that is a failure so they had to devise a strategy to stop the Swedish successful story, revert and destroy it and, of course, that wasn't hard to be put in place. All they had to do was to find the proper politicians agreeing to promote a Soviet style pseudo-socialism barking demagogy and falsities. Don't forget - the initial social-democracy in Sweden was built by hard working people well versed in critical, rational thinking not lazy losers like the one who slowly started to pump and promote the demagogue politicians rewarding them with free, undeserved shit.

In reply to by Ivan de beers

Tallest Skil Ivan de beers Fri, 12/15/2017 - 05:32 Permalink

Eat shit, lunatic. Your complicity in genocide will net you a rope around your neck. Fuck the hell off if you don't have anything to contribute.  A lot has been written about when Swedes will become a minority in Sweden. For 16-year-old Swedish boys, this will become a reality by 2016, considering the current immigration volume. Because of this, a massive imbalance will be created between the sexes. You can figure this out with simple math. Out of the “unaccompanied refugee children” that have arrived during 2015, 91% have been boys. 2,164 “unaccompanied refugee children” have arrived during the last 7 days, which means that we get 309 per day. That gives us 281 boys and 28 girls. 32% of the “unaccompanied refugee children” were 16 years old during 2014 (and 20% were 17). That gives us 90 “unaccompanied refugee boys” and 9 “unaccompanied refugee girls” who are 16 per day. In 2014, there were 52,562 16-year-old boys and 48,627 16-year-old girls. Per day that gives us 144 boys and 133 girls. Total amount of 16-year-olds per day: Boys: 144 non-unaccompanied refugee kids (swedes and immigrants), 90 unaccompanied refugee kids Girls: 133 non-unaccompanied refugee kids, 9 unaccompanied refugee kids This means that 36% of all 16-year-old boys will be “unaccompanied refugee children” within a year going by today’s levels. Further, because already now 30% of kids age 13-17 have an immigrant background, we get the following: Summary age group 16-year-olds per day: Boys: 101 Swedish, 133 immigrants (90 “unaccompanied refugee children” included) Girls: 93 Swedish, 49 immigrants (9 “unaccompanied refugee children” included) In other words, among 16-year-old boys the immigrants will be in a clear majority before the end of 2016. To this you also have to add the other 16-year-old refugee children that show up with their parents or who show up later via reunion. This will speed up the process even more. This means there will be 165 boys per 100 girls in this age group in Sweden! Do China or lndia come close to this kind of gender imbalance? No. It’s even worse than in those countries. In India, 115 boys are born per 100 girls, and in China the number is only 119 boys per 100 girls. Even if the multiculti traitors don’t care that Swedes will become a minority, they still have to understand the explosive potential of a society with 165 boys per 100 girl. I’m at loss for words. Sweden is abolishing itself! https://www.?ashback.org/t2645463 https://archive.is/QmZJL

In reply to by Ivan de beers

Memedada HRH of Aquitaine 2.0 Fri, 12/15/2017 - 06:46 Permalink

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Confirmation-bias when it is worst. Links to random blog-entries/result of a Google-search does not constitute reliable data.

In reply to by HRH of Aquitaine 2.0

VK Tallest Skil Fri, 12/15/2017 - 03:19 Permalink

Why would Sweden be empty in 40 years? There are no mass deportations that will happen, the population is throughly socialsed and race equalised. The likely outcome is that Sweden will be a pretty mixed country and with strong Islamic roots. The leftist socialists won a long time ago, no amount of keyboard rage can change this fact. The plan proceeds apace.

In reply to by Tallest Skil

Mustahattu VK Fri, 12/15/2017 - 05:01 Permalink

Yep and those islamist roots don't mix with the open-minded Swedish roots. There will be lots of problems as there are already, but they just keep on importing more. They know they are in deep shit with perhaps 90% of the refugee population being non-working leeches. No one will hire these people because they know if they do, they'll eventually demand halal lunch and a prayer room, and will complain about women colleagues not wearing enough clothing. Islamic values are the complete opposite to Nordic values.

In reply to by VK

yerfej VK Fri, 12/15/2017 - 21:26 Permalink

Sweden will be empty in 40 years because the men have abdigated their responsibility to protect, no matter how stupid the women are. When a threat presents itself you kill it, you don't turn and ask a woman what she thinks. Women can nurture and wish fantasy but real men must deal in reality.

In reply to by VK

Memedada Tallest Skil Fri, 12/15/2017 - 03:47 Permalink

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“This is a proven mathematical certainty.” Based on what data? Gatestones “data”? Sweden is doing fine – and much much better than US on all relevant indicators. Like health care, infrastructure, education, GDP, living standards, crime etc. But seriously: what data do you use to “calculate” the certain fate of Sweden? 

In reply to by Tallest Skil

XanII Tallest Skil Fri, 12/15/2017 - 07:06 Permalink

Visit the place. Or Gothenburg for that matter. In the center areas you notice ZERO problems. But they are there. Friend got mugged last december in a christmas party. Gang of foreigners was waiting outside the bar. Inside some feet away was millionaires partying and then the thugs were in wait. They got his wallet and phone before running away. 

In reply to by Tallest Skil

DaveA Tallest Skil Fri, 12/15/2017 - 14:17 Permalink

Why not? Women don't think rape is a big deal, or they wouldn't vote for parties that support mass third-world immigration. And men don't care because it's not us getting raped, it's women who've made it clear that they can get along just fine without us -- "A woman needs a man like a fish needs a bicycle."

In reply to by Tallest Skil

Easyp Fri, 12/15/2017 - 03:00 Permalink

Swedish people deserve the misery of a property crash, terrorism on their streets and rape by refugees because they believed in the socialism and uncontrolled immigration peddled by their elites.

TheSilentMajority Fri, 12/15/2017 - 03:18 Permalink

This is part of the final solution to ethnicly cleanse Sweden of all the ethnic whites.

The politicians will now demand more immigrants from non-white countries to “save the economy of sweden.”

Well played by the evil globalists!!

MD Fri, 12/15/2017 - 03:19 Permalink

Sweden has a population of less than 10 million. Who cares what happens there? Lots of people freaking out because the whitest of the blonde whites are letting in hundreds of thousands of the darkest. Who gives a shit????

VK MD Fri, 12/15/2017 - 03:24 Permalink

They care because "they" want to save "western civilization". But the West was lost a decade or two ago. The leftist socialists won a long time ago, its their agenda which gets victory after victory. The right is merely trying to delay the inevitable, they haven't had a big legislative win in decades. Trump has been neutralized, Brexit has been made toothless, in Germany Merkel won after letting in a million plus immigrants and in Sweden nothing has changed. Nobody is coming to save the West, enjoy the fall with hookers and blow.

In reply to by MD

MD VK Fri, 12/15/2017 - 03:38 Permalink

Well what was Brexit about anyway? It was sold, subliminally, as protection against further Muslim migration. But apparently even Brexit can't stop that - the migration from places like Pakistan have nothing to do with the EU, and everything to do with Britain's own immigration policies! It's entirely likely that Brexit was a really, really stupid move. A stupid move on the same level as electing a total dotard to the presidency.

In reply to by VK

Memedada VK Fri, 12/15/2017 - 03:59 Permalink

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Tell me of one important “socialist” policy being implemented in the West doing the last 50+ years? And no, taxes are not “socialist” – the Kings and Queens who taxed their peasants to starvation to wage wars were not “socialists” but feudalists. Like the governments today that are owned by capitalists are not taxing the plebs for anything else that keeping them from revolting (redistribution) or to hand it over to their capitalists lords (the MIC, Wall St./the banks/bail-outs, corporate welfare etc.). US plebs have been fooled to think that “social liberalism” (distribution within a capitalist economy –i.e. an economy that is predominantly privately owned) is equal “socialism”. Stupid, but it is not hard to guess why TPTB have made – and succeeded in – this propaganda-trick.

In reply to by VK

JDFX Fri, 12/15/2017 - 03:40 Permalink

Not surprised, it's turning into the middle East , WITHOUT the sun, or regard for civilised community living , laws.  Some will know it as a maturing SHITEHOLE ! Fully valued, crapped on and up with events. SELL, MORTIMER, SELL !!! 

HRH of Aquitaine 2.0 Fri, 12/15/2017 - 06:03 Permalink

Sweden invited gimmigrants and rapefugees. What the fuck did they think would happen?

There is a name for this: it is called white flight. People don't want to live around uncivilized colored and ragheads.

Amphius1 Fri, 12/15/2017 - 04:25 Permalink

Analysts who desperately try to maintain the faith in bubble markets to save their own interests make me laugh. They think they are being cunning, but they are so transparent.

SmittyinLA Fri, 12/15/2017 - 06:27 Permalink

At some point in time home buyers would notice Stockholm is turning into a 3rd world migrant ghetto, there are cheaper places with less crime and more sun.

Batman11 Fri, 12/15/2017 - 06:34 Permalink

This is a global problem and it shows all the flaws in current economic thinking.It’s time to learn from past mistakes.The real estate boom, where would neoliberalism be without it?2008 wouldn’t have happened for a start.Even sparsely populated New Zealand has seen a real estate boom and has a large problem with homelessness; these are symptoms of neoliberalism. Ireland and Spain had house building and house price booms at the same time, it’s nothing to do with supply and demand. The real estate boom features all the unknowns in today’s thinking, which is why they are global.This simple equation is unknown.Disposable income = wages – (taxes + the cost of living)You can immediately see how high housing costs have to be covered by wages; business pays the high housing costs for expensive housing adding to costs and reducing profits. The real estate boom raises costs to business and makes your nation uncompetitive in a globalised world.The unproductive lending involved that leads to financial crises.The UK:https://cdn.opendemocracy.net/neweconomics/wp-content/uploads/sites/5/2017/04/Screen-Shot-2017-04-21-at-13.53.09.pngThe economy gets loaded up with unproductive lending as future spending power has been taken to inflate the value of the nation’s housing stock. Housing is more expensive and the future has been impoverished.US:https://cdn.opendemocracy.net/neweconomics/wp-content/uploads/sites/5/2017/04/Screen-Shot-2017-04-21-at-13.52.41.pngUnproductive lending is not good for the economy and led directly to 1929 and 2008.Neoliberalism’s underlying economics, neoclassical economics, doesn’t look at private debt and so no one really knew what they were doing.The real estate boom feels good for a reason that is not known to today’s thinkers.Monetary theory has been regressing since 1856, when someone worked out how the system really worked.Credit creation theory -> fractional reserve theory -> financial intermediation theory“A lost century in economics: Three theories of banking and the conclusive evidence” Richard A. Wernerhttp://www.sciencedirect.com/science/article/pii/S1057521915001477 “…banks make their profits by taking in deposits and lending the funds out at a higher rate of interest” Paul Krugman, 2015. He wouldn’t know, that’s financial intermediation theory.Bank lending creates money, which pours into the economy fuelling the boom; it is this money creation that makes the housing boom feel so good in the general economy. It feels like there is lots of money about because there is.The housing bust feels so bad because the opposite takes place, and money gets sucked out of the economy as the repayments overtake new lending. It feels like there isn’t much money about because there isn’t.They were known unknowns, the people that knew weren’t the policymakers to whom these things were unknown. 

William Dorritt Fri, 12/15/2017 - 09:25 Permalink

SolutionBring in millions of disease ridden, low IQ, low Education, low Skill Goat FuckersAnd give them housing vouchers and free everything else to grow the GNP on paper The only hope for Sweden is a Russian Invasion, the Swedes can celebrate by putting on ski masks and dealing with the socialists like in the movie, but instead of just one night, give them a month or two to do a thorough job with the collaborators. What is the name of the movie, is it the purge ??https://fanart.tv/fanart/music/b69d82f9-ade6-4f45-88e5-953353aad2b3/alb… 

DaiRR Fri, 12/15/2017 - 14:56 Permalink

Let me know when the prices drop by 50 percent, but that's not going to happen.
Over the past decade Sweden house prices are up 100 percent and apartment prices up 150 percent.
Supply through new construction has caught up with demand. Go figure. The prices don't increase.
More city people are moving to their country homes for year 'round living, retired or telecommuting. Sure beats dealing with the rabbit warren immigrant infestations.