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Swedish home prices fall 3 pct in Oct - HOX index
November 14, 2017 / 8:00 AM / a month ago

Swedish home prices fall 3 pct in Oct - HOX index

STOCKHOLM, Nov 14 (Reuters) - Swedish home prices fell for the second month in a row in October, another sign that the country’s housing market is starting to cool off, the Nasdaq OMX Valueguard-KTH Housing Index (HOX) showed on Tuesday.

Prices decreased 3.0 percent in October from September, after falling 1.5 percent the month before.

“The fall in September and October home prices are the fastest since the financial crisis in 2008,” said Stefan Thunberg, analyst at Valueguard.

On a yearly basis, prices were up 2.9 percent.

Apartment prices were up 0.6 percent year-on year, and single-family home prices rose 4.4 percent.

The HOX index is based on a statistical model that compensates for different types of homes sold during various periods to give a better picture of underlying price trends.

A boom in Swedish home prices since the late 1990s has driven up household debt to some of the highest levels in Europe.

In 2016, Sweden introduced rules making it mandatory for new borrowers to pay down the principal on mortgages, a measure widely seen as having a dampening effect on the housing market. (Reporting by Johan Sennero)

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