Financial experts predict house prices will continue to decline until the second quarter of 2024.

Financial experts predict house prices will continue to decline until the second quarter of 2024.

Bloomberg Economics' model shows that house prices in the third quarter of 2023 were in line with levels suggested by fundamentals. However, that doesn't mean the decline is over - analysts expect prices to fall by around 8 percent and bottom out in the second quarter of 2024. This represents an overall decline of almost 13 percent from the peak in the quarterly data, roughly in line with the 13.3 percent decline implied by the Riksbank's forecasts published in September. 

Such a sharp and rapid decline in property prices in Sweden could have a significant impact on the country's real estate market. If prices fall by 13 percent, many property owners could face negative equity, which could lead to financial difficulties. At the same time, it could be a good opportunity for potential buyers to enter the Swedish real estate market as prices are expected to remain low. 

Demand for real estate could increase due to lower prices and attractive financing options. This could cause the market to gradually recover once prices bottom out. For investors, the current situation could provide an opportunity to invest in the Swedish real estate market and benefit from long-term appreciation. 

The overall picture of the Swedish real estate market could therefore change significantly in the coming quarters, with opportunities emerging for buyers and investors, while at the same time challenges remaining for existing property owners.

According to a report by www.cash.ch