Housing prices declined after the Riksbank's interest rate increase, according to Valueguard's price index.
In May, prices in the Stockholm area had fallen by 1.7 percent in one month.
In Gothenburg 1.3 percent.
Last month's slowing prices may be partly an effect of seasonal effects.
But the trend is clear, according to Linda Lövgren, housing analyst at the consulting company WSP.
- The long-term trend is that housing prices will fall.
This is because more people are getting a challenged household economy, with wages being less valuable due to record high inflation.
Now interest rates are rising at the same time as we see increased prices for, for example, electricity and petrol.
A price reduction can also be an opportunity for young people to enter the housing market.
- It has not been healthy that we have had housing prices that have increased indefinitely.
A certain damping can be healthy, then you want it to happen in a calm and sensible way.
"No home crash"
By the summer of 2025, the Riksbank expects the repo rate to land at almost two percent.
Next year at one percent.
At the same time, there is uncertainty in the global economic market, which also affects housing prices.
However, Linda Lövgren does not believe in any major housing crash.
- We will not have a housing crash in any way.
Swedish households are reluctant.
There are also many companies that are doing well.
Two years ago, many experts believed that unemployment during the pandemic would affect housing prices.
But those who were notified then were mainly staff in the tourism, and hotel and restaurant industry, Linda Lövgren explains.
- It is usually not the target group who can afford to buy a home.
Now the downturn will probably hit a little wider, which will also contribute to lower demand for housing.