Swedish Housing Starts Show Signs of Bottoming Out on Rate Cuts.

The pace of new home construction in Sweden appears to be stabilizing, with housing starts declining by less than 5% in the first quarter of this year. This is the smallest year-on-year drop in two years and suggests relief for homebuilders as the central bank reduces borrowing costs and interest rates are expected to fall further. Residential property prices have also increased, and construction costs have moderated. However, economists caution that a rapid recovery is unlikely, and the industry warns of a potential labor shortage. The National Board of Housing expects 27,000 new homes to be started this year, far below the estimated need of 67,000 to avoid exacerbating housing shortages. [Extracted from the article]

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