Does the price on apartments in Sweden appropriately reflect the loans of the private housing cooperative?

Abstract

This thesis investigates if and how the price on apartments in Sweden reflect the loans of the private housing cooperative during the time period 2007 until 2016, mainly with a fixed effects model. The result displays that increased leverage in the private housing cooperative does not result in a corresponding decrease in price of the belonging apartment. This may be a cause of a combination of determinants, for example a complex system, lack of trans- parency in the annual reporting and different lending terms between households and private housing cooperatives. Hence, to increase the market effciency, jurisdiction implementations cannot only be targeted towards buyers but also towards determinants that may reduce the asymmetric information. To really handle the problems, a thorough and extensive overview of the entire housing market is required.