In 2022, Sweden’s central bank undertook an aggressive interest rate hiking cycle that ricocheted through the property market.
JONATHAN NACKSTRAND / Contributor / Getty Images
Sweden’s property prices are facing a serious drop as the country’s former central bank governor warns of lofty household debt levels.
House prices in Sweden have risen fairly reliably over the last decade. This has been buoyed by ultra-low interest rates in a system where around half of people’s mortgages are financed with variable rates and many of the rest are on short-term fixed rates.
But now property prices are tumbling. And this downturn is not surprising given the “dysfunctional” nature of the market, according…