House prices drop 15 pct in Sweden

STOCKHOLM, Dec. 2 (Xinhua) -- House prices, pressed by rising interest rates and a weak economic situation, continued to drop in Sweden, and since its peak last spring, the price of an average home has fallen by 15 percent, latest statistics showed.

The prices of villas in Sweden have fallen by an average 16 percent, and those of condominiums by 13 percent, the Swedish daily Dagens Nyheter (DN) quoted SBAB Bank and housing site Booli's statistics as saying.

Villas in the Greater Stockholm region have lost the most -- almost 20 percent -- in value, the statistics show.

"The general trend is clear: rising interest rates, inflation and general financial worries are putting pressure on housing prices month by month," DN reported.

Many analysts have predicted a price drop of around 20 percent in general, SBAB's chief economist Robert Boije said. "We will soon be there."

Boije said that as long as interest rates remain high, housing prices are expected to decline even more.

"If electricity prices continue to rise from their current level, it will especially affect house prices further," he added.

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