Housing prices in Sweden are increasing due to lack of supply

Housing prices in Sweden are increasing due to lack of supply

Over the past year, houses and apartments in Sweden have increased in value by 4%, and from Q3 2013 to Q4 2013 - by 1%, according to ee24.com citing opp-connect.com.

In Q4 2013, the average housing price in Sweden has amounted to €250 thousand (SEK 2.2 million),  which is by €11 thousand more than in Q3. In Greater Stockholm prices have increased to €455 thousand, in the Big Malmo - to €318 thousand.

Compared with Q3, housing has become more expensive in 12 out of 21 Swedish regions, hasn't changed in value - in 5,and has become cheaper - in 4 regions. The largest increase was recorded in Jämtland county in the west (+5%), fall - on the island of Gotland, located between mainland Sweden and Latvia (-5%).

Market experts point increase in demand owing to low mortgage rates, and great supply reduction.