House prices in Sweden have fallen at their fastest rate for nine years, with prices for detached houses down by 19 per cent from their peak and prices for apartments down by 13 per cent. And while Sweden has been recording month-on-month falls in house prices since April, other countries are now starting to show similar trends.
At the start of this year, for instance, the UK was recording month-on-month growth in house prices of 4 to 7 per cent. From July to September, however, house-price growth stalled.
In the Netherlands and Germany house prices fell in September at a rate of 1.4 per cent and 1.1 per cent respectively. While these numbers may appear low, they may be the first signs that the housing market is set for significant price instability.