In July, Swedish housing prices fell by 0.7%, with apartment prices dropping significantly more than usual, according to SBAB. While apartment prices decreased by 2.6% nationwide, villa prices saw a slight increase of 0.2%. The trend suggests a continued decline in apartment prices, despite stable villa prices. Economic factors, such as delayed fee increases by housing associations, may be influencing this trend.
Swedish Housing Prices Experience Significant Decline
Swedish Housing Prices Experience Significant Decline
Housing prices in Sweden fell by 0.7% in July, according to new statistics from SBAB. The trend indicates falling apartment prices and a slight upward movement for villa prices.
Typically, housing prices drop in June and July, and this year is no exception. However, apartment prices are falling "significantly more than usual," says Robert Boije, Chief Economist at SBAB.
– The trend suggests that, even when accounting for seasonal effects, we have declining apartment prices. However, this is not the case for small houses, where prices remain more or less stable.
Overall, apartment prices fell by 2.6% in Sweden compared to the previous month. The largest declines were in Greater Gothenburg and Greater Stockholm, with drops of 4% and 3.4%, respectively. Only in northern Sweden did apartment prices rise, by 2.3%.
Villas on the Rise
Villa prices, however, moved upward by 0.2% across Sweden. Northern Sweden saw the largest increase, while Greater Stockholm experienced the largest decline.
One explanation for the price development in the apartment sector could be that many housing associations have been slow to raise fees in response to rising interest rates. Despite falling interest rates, housing associations may need to continue raising fees in the future.
– The turnover of apartments has fallen significantly since the end of last year, which has not happened in the villa sector. We believe two factors may be behind this, says Boije.
Remarkable Developments
Normally, housing prices rise in August, only to fall back from September to December. Based on this year's price development and average seasonal effects, apartment prices over the whole of 2025 would fall by about 3%, while villa prices would remain virtually unchanged. If this happens, it would be a remarkable development given that housing interest rates have fallen sharply and households' real incomes and purchasing power are rising, according to Boije.
At the same time, there may be a pent-up need to change housing. There is uncertain development in the world, and if uncertainty decreases, the negative seasonal effect could be counteracted by the pent-up need, Boije suggests.