Swedes' home price expectations back at pre-pandemic levels, bank SEB says

STOCKHOLM (Reuters) - A Swedish home price sentiment indicator recovered further in September from the lows seen in June due to the coronavirus pandemic, rising to +46 points from +40 in August, a survey indicated.

The survey, published monthly by Swedish bank SEB, indicated that the share of households that expect rising home prices in the coming year grew 3 percentage points to 55% while the group predicting falling prices fell 3 points to 9%.

“The entire record decline this spring has now recovered and the households’ home price expectations are back to where they were before the pandemic hit,” SEB economist Jens Magnusson said in a statement.

“It’s clear that both households and analysts initially overestimated the negative effect of the pandemic on the housing market.”

Reporting by Helena Soderpalm, editing by Anna Ringstrom and Kim Coghill