Swedish Real Estate Hotter Then Ever as ‘Hysteria’ Hits
Bloomberg 3/5/2021 Charles Daly, Ott Ummelas and Love Liman
(Bloomberg) Swedish house prices soared to the highest level ever recorded, as a growing number of people make use of unprecedented central bank stimulus to upgrade into bigger homes.
“From a credit perspective, one can only conclude that the market has been gripped by hysteria, which is connected to central banks pumping money into the system,” said Carl Johan Lagercrantz, a portfolio manager at Strand Kapitalforvaltning AB in Stockholm.
Houses cost 15% more in February, on average, than a year earlier, while apartments were up 6%, according to data published on Friday by Svensk Maklarstatistik. Both gauges are now at record highs.