Housing Cooperatives in Sweden: The Effects of Financial Deregulation
J. OF REAL ESTATE FINANCE AND ECONOMICS, Vol. 15, No. 2
Posted: 20 Jun 1997
The paper focuses on transaction prices for recent movers inco-operative dwellings during the period 1980 to 1993. Prices increased by 80 percent in real terms up to 1990 to fall by 35 percent between 1990 and 1993. A hedonic analysis is used to analyze the impact of changing macroeconomics and financial deregulation. The financial deregulation, which took place in 1985, seems to have caused increased loan-to-value ratios on the co-operative housing market. Using 1983 as a point of reference, a Tobit analysis reveals that the average LTV ratio in 1990 was 290 percent higher that year. After 1990 the LTV ratio fell by 45 percent due to credit constraints.
JEL Classification: R0
Suggested Citation: Suggested Citation