Households' expectations of housing prices are increasing. The proportion who believe in rising prices is at 58 percent in September, according to the major bank SEB's housing price indicator. 11 percent believe in falling prices and 20 percent believe they will remain unchanged.
In an average used by the bank, the level of those who believe in higher housing prices increases from 43 units to 47.
"Households' housing price expectations are getting a boost again after the Swedish Central Bank's latest interest rate cut. With the major viewing weekend behind us and a record-large supply on the housing market, it remains to be seen if the interest rate cuts will be sufficient to create a more sustained housing price increase", says SEB's private economist Américo Fernández in a press release.
Households also believe that the repo rate will be at 3.10 percent in a year, which is a decrease of 0.22 percentage points compared to August.
