The value of the Swedish krona has dropped steadily against the euro since summer 2021, hitting its weakest value since the beginning of 2009 on Wednesday.
A euro now costs 11:49 kronor, up from around 10 kronor in summer 2021. This means the krona has lost around 15 percent of its value against the euro in just under two years.
Discounting the 2009 valuation – which was a short-term dip – the value of the krona has never been lower than it is now.
At the same time, one dollar costs 10:66 kronor, which has remained relatively stable. In March one dollar cost over 10:70 kronor, and last autumn one dollar would have cost you 11:40 kronor.
Is the Swedish property market coming back to life after a long period of hibernation? Recent figures suggest as much.
Swedish property prices rose for the fourth consecutive month in April – 5.8 percent since the turn of the year and 1.7 percent compared to the previous month, according to state-owned mortgage bank SBAB.
The price of a detached home rose 1.9 percent in April compared to March, and apartments rose by 1.2 percent.
SIX MISTAKES TO AVOID:
It’s not unusual for the property market to perk up in spring, but there’s a clear increase even adjusting for seasonal effects.
“Summed up since the turn of the year, apartment prices have risen by over 7 percent. Even the estimated trend shows a clear increase, in other words prices are rising more than you would expect given the time of the year,” said SBAB chief economist Robert Boije in a statement.
A major reason behind the price increase is the expectation that Sweden’s central bank, the Riksbank, has stopped raising the country’s main interest rate and the hope that it might even cut the rate in its next announcement, which will come next week.
While this is expected to bump up the price of buying a property, it is on the other hand also likely to lead to lower mortgage rates.
EXPLAINED:
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Half baked financial measures produce results like this