Housing Market and Credit Assessment
Housing markets
Rising interest rates might cool off hot Nordic housing markets
Housing prices
22
250
Index, 2007=100
Housing market
3m moving average
225
200
175
150
125
100
Households' credit growth
15.0
250
15.0
% y/y
Households' credit growth
% y/y
12.5
225
12.5
200
10.0
175
7.5
Sweden
Norway
150
5.0
Finland
125
2.5
100
0.0
Sweden
Norway
Denmark
Finland
10.0
7.5
5.0
2.5
0.0
75
Denmark
75
75
-2.5
-2.5
07 08 09 10 11
12 13 14 15 16 17 18 19 20 21
Source: Macrobond and Nordea
07 08
09
10
11 12 13
14 15 16 17 18 19 20 21 22
Source: Nordea Markets and Macrobond
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•
•
Contrary to expectations, house prices increased to record-high levels in all the Nordic countries during the pandemic, not least because of
unprecedented expansionary fiscal and monetary policy.
The economic impact of the pandemic was limited for those groups on the labour market which are more active on the housing market, while demand
surged due to preferences shifting towards larger housing and single-family homes. At the same time, people's mobility was severely restricted, causing
a sharp decline in the number of homes on the market which in turn contributed to driving prices higher.
However, with interest rates on the rise and mobility levels returning to normal, there are now more downside risks to housing prices.
NordeaView entire presentation