Higher interest rates have caused lower prices for housing in Sweden. Prices have fallen by twelve percent since their peak in the spring of 2022.
"This is an unusually large price drop," says Stefan Westerberg, private economist at Länsförsäkringar.
Many people remember the housing crash of the 1990s with horror. After a period of low interest rates, they were raised sharply – and we saw dramatic falls in housing prices. Not unlike the situation today, says Klas Eklund, who in the 1980s worked for Social Democrats-led governments.
"At that time, changes were also made to the tax system that made it more expensive to borrow. Households were hit twice," he says.
One person who saw her newly acquired condominium terraced house drop in value by one hundred percent in 1992 is Vingåker resident Cecilia Eriksson. Now, she says, history is repeating itself to some extent.
"I recognize myself in my eldest son," she says.
Hear how Cecilia fared in the video – and what economists say about the risk of a new housing crash, and how much more housing prices could fall.