Norway and Sweden: Considerable uncertainty on house prices – Danske Bank

Housing markets in Sweden and Norway are likely to remain a key theme in 2018, as investors continue to evaluate the tail risk of Scandi housing markets crashing, according to analysts at Danske Bank.

Key Quotes

“Indeed, such concerns among foreign investors have added considerable volatility to Scandi FX recently. In short, the story of declining house prices in Norway and Sweden share some important similarities given that both have been driven by an adjusting supply side alongside new regulatory measures. Hence, Scandi housing markets show that house prices can decline even if rates do not rise and/or in the absence of external shocks.”