Anna Breman, chief economist at Swedbank, argued that Sweden's housing market is finally showing signs of slowing down, in part, thanks to changes to repayments introduced in June by the Swedish financial supervisory authority, which took over regulation of home loans from the Riksbank three years ago.
She told CNBC in an email, "Housing prices are still increasing but at a much lower rate as compared to a year ago. It will take some time to fully assess the impact of the new amortization requirements.
"But I am optimistic that they will be effective in calming the markets in Stockholm and Gothenburg where house prices have increased the most."
Sweden's central bank, declined to comment when contacted by CNBC as their economists have entered a media black-out period ahead of the nation's next monetary policy meeting on Wednesday 26th of October with the decision to be announced the following day.