Housing is now in the worst rout since 1990s

Sweden’s home-price decline accelerated in October, as the Nordic country gripped by the most severe housing slump in three decades shows what may lie ahead for many other developed economies.

One of the pacesetters for a global housing downturn fueled by soaring inflation and central bank moves to curb price increases, Sweden has now seen home prices drop by about 14% from a peak earlier this year, according to Valueguard, which compiles the data. Prices have slid for seven straight months, as households are being squeezed by costs.

The slump is unusual in a country where previous corrections have been shallow and short-lived.