Finance Minister Bolund: New rules lower housing prices 1 - 7%
Finance Minister Bolund now says that the government's analysis is that the tightening of amortization requirements leads to lower housing prices between 1 - 7%. The effect is greatest where prices are highest. At the same time, Swedbank adds a further 5% fall in house prices in Sweden's metropolitan areas.
Apartments in Solna.
The introduction of the tougher amortization requirement is expected to affect approximately 15% of all new mortgage borrowers and, according to the analysis from the Government Offices, will lower housing prices between 1% and 7%, with the highest decline where prices are highest. However, one expects no impact on newly produced housing, as there is a five-year exception for loans for new production.
The latter is quite sensible. Should it be borrowed money, it's just to create something real. Borrowing to bid the highest on an existing apartment does not create anything. Lending to actually build new creates something and leads to a better society with more homes.
Swedbank writes that the global economy will continue to strengthen, but primarily apartment prices in our metropolitan areas will continue to decline by 5% during the year.
"The recent uncertainty in the housing market is expected to continue, although there is a difference between metropolitan areas and the rest of the country. A high range of newly built housing in 2018 and new amortization requirements mainly affect the metropolitan regions, where prices may fall by another five percent, mainly on tenant-rights, at the same time as a weak rise in prices in villas outside the metropolitan areas is to wait. "
For Sweden, Swedbank adjusts slightly this year's GDP forecast slightly and next year's boom is over.
Husmasken reports that apartment prices for monthly data in Greater Stockholm are down 9% last year. The same goes for Stockholm within the tariffs, as well as Greater Stockholm. They are down 13% since mid-year for greater Göteborg.
If you drop another 5% in decline, in principle, the entire cash effort is gone for those who bought an apartment last year in Stockholm. In practice, it means that you are locked in the apartment and can not move to another resident if you do not have an additional 15% to deposit as a cash deposit.
For example, if you put in 750 000 SEK in cash on an apartment for 5 MSEK, it will be sold at 14% for 4.3 MSEK. Your loans were 4 250 000: - MSEK. Where are you now? 50 000: - SEK, which is only 15% in an apartment with a price of only 333 333 SEK.
Source: http://cornucopia.cornubot.se/2018/01/finansminister-bolund-nya-reglerna.html