Across the country, house prices fell by 1.6 percent in May, according to Valueguard's price index.

The fall for condominiums was 2.1 percent, while the corresponding figure for house prices was slightly less significant, 1.3 percent.

In Malmö, prices for condominiums fell by 2.2 per cent, while house prices fell by 1.4 per cent.

In Gothenburg, condominium prices also fell, by 1.9 percent.

A trend break was seen for the villas in Gothenburg, whose prices instead rose by 0.3 percent.

Most noticeable was the fall in housing prices in Stockholm, where condominium prices fell by 3.0 per cent and house prices by 3.2 per cent.

During the first two weeks of June, condominium prices continued the journey downwards as the month before in the two largest Swedish cities.

In Stockholm, the decline was 3.3 percent and in Gothenburg 3.9 percent.

Since the last week of April, when the big decline began, prices have fallen by about 7 percent in Stockholm at present, according to Valueguard's daily index.

Expensive housing is affected first

A turnaround that was first seen in the more expensive areas, according to Lars-Erik Ericson, spokesperson and former CEO of the analysis company Valueguard.

- If you divide the Stockholm area into the most expensive, medium-expensive and the slightly cheaper areas, it was very clear that the decline was strong in the more expensive areas and not as clear in the others.

Now at the end, we see that the decline is also noticeable in other parts, says Lars-Erik Ericson.

According to Lars-Erik Ericson, the fact that falling prices are first noticed in the more expensive areas is usually due to changes in the stock market, when another capital is required to be able to buy these homes.

- It has nothing to do with Stockholm as such but with the expensive housing - and they are often found in Stockholm.

Similar cases during the pandemic

At the beginning of the pandemic, prices fell, but levels recovered so quickly that it was barely noticeable in the monthly statistics.

- That decline was more of an uncertainty shock and then it turned out that prices continued to rise instead.

If you even out the case as we saw then, the decline was about 7-8 percent, but if you look at the monthly figures, the decline was less than half.

Since then, we have seen a sharp price increase during the pandemic, adds Lars-Erik Ericson.

- Even though we see a large price drop now, we are still above the level we were at before the pandemic.

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Three common mistakes around mortgages Photo: TT