Sweden’s cooling housing market is a warning to others with low interest rates and a red-hot property prices | Quartz


Household debts are growing much faster than incomes in Sweden. The average debt-to-income ratio for households with mortgages was 338% in September, up from 326% a year earlier. This makes households vulnerable when interest rates start to rise (the current benchmark rate is below zero, even though economic growth has been relatively strong) or house prices start to fall significantly.

The Scandinavian country doesn’t take the prospect of a housing shock lightly, because it fears a re-run of the early 1990s, when a real estate crash and banking crisis devastated Nordic economies.

Source: Sweden’s cooling housing market is a warning to others with low interest rates and a red-hot property prices — Quartz

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