The Swedish Housing Market: An Analysis of Contributing Factors on the Sales Price : With Discussion on the Amortization Requirement’s Effects

Sammanfattning: The purpose of this report was to find the impact of different factors on the sales price of one bedroom apartments in Stockholm. Further, an analysis follows discussing the repercussions that the amortization requirement has had on the sales price. The stated problem have been highly discussed, as many depend on the housing market. To regulate the housing market in Sweden the Swedish government, together with Finansinspektionen, has chosen to introduce an amortization requirement. This means that every new loan taker has agreed to amortize 1 or to 2 percent of the total loan. The method for analysis was multiple linear regression, where several different variables were applied. The most important parameters were different measurements on time and place. But less intuitive variables, such as quality of water, were also included. The data used for analysis was supplied by Valueguard AB dated from 2013 to present day, which included approximately 20 000 data points. Furthermore, the result of the analysis was not very surprising. It is concluded that the sales price on a condominium in Stockholm City has a business curve based on the time of the year. It is also clear that external factors as distance to water makes a difference in price. As far as the amortization requirement is concerned, it shows that the steep price curve over time has started to flatten since 2016, but not exceedingly much. This could be a consequence of the scope of the analysis, as only one room apartments were included.