(Bloomberg) -- A closely watched indicator of Swedish home prices fell to its lowest level since the global financial crisis amid higher mortgage rates and inflation accelerating to a three-decade high.

For the month of August, SEB’s Swedish housing-price indicator -- representing the difference between the proportion of respondents who believe in rising prices versus who expect to see a fall -- slumped 15 points to minus 42, the lowest since 2008.

“All in all, with little evidence of a short-term turnaround in household sentiment, our best guess is that both the indicator and home prices will continue lower,” SEB economist Marcus Widen said in a research note. 

Read More: Swedish Home Prices Drop the Most Since the Financial Crisis 

Widen also pointed to the power market as a further headwind for the country’s property sector. “A less energy cost-efficient home is likely to be less attractive on the housing market, or buyers are likely to require a large discount,” he said.

The proportion of Swedish households expecting a drop in prices totaled 57% in August while those that still believe in rising prices decreased to 15% versus 24% the prior month. The survey covered about 1,000 households between July 26 and Aug. 2.

©2022 Bloomberg L.P.