Continued Decline in Swedish Housing Prices with No Recovery in Sight
Swedish housing prices continued to decline in June 2025, with no signs of recovery, prompting concerns from economists.
Key Points
- • Housing prices fell by 0.9% in June 2025, with a 0.2% decline even after seasonal adjustments.
- • The villa market in Greater Stockholm experienced a 3.2% price drop in June.
- • Economic uncertainties including U.S. tariffs and Middle Eastern turmoil are impacting buyer confidence.
- • Further interest rate cuts from the Riksbank may be needed to stimulate the market.
In June 2025, housing prices in Sweden experienced a continued decline, dropping by 0.9% according to statistics from SBAB and the real estate site Booli. Even after seasonal adjustments, prices remained lower by 0.2%, indicating a prolonged downturn that experts suggest could worsen as the year progresses. Robert Boije, chief economist at SBAB, expressed concerns that the forecast for 2025, which initially anticipated a 3% increase in housing prices, might need to be revised downward due to the persistent negative trends observed since spring 2025.
The housing market in Greater Stockholm has seen particularly severe impacts, with a 3.2% decline in prices specifically in the villa market last month. Boije cited geopolitical factors, such as the tariffs introduced by President Donald Trump and instability in the Middle East, as contributing to reduced buyer confidence. He noted that buyers are behaving more cautiously due to these external pressures, which could be exacerbating the downturn in housing prices, particularly in urban areas where values are already high.
Moreover, the recent interest rate cuts by the Riksbank in June 2025 have not yet stimulated recovery in the housing market, with Boije indicating that additional cuts will be necessary to encourage more confidence among buyers. He suggested that a stabilization of global conditions, such as an easing of tariff policies, could potentially lead to a positive shift in market dynamics.