Swedish single-family house prices fell 5% in the fourth quarter last year compared with the three previous months as a downturn in real estate prices deepened, data from Statistics Sweden showed on Thursday.

Prices fell 2% compared to the corresponding period in 2021.

After decades of nearly unbroken price rises the Swedish housing market has slumped after the central bank started hiking interest rates last year amid soaring inflation that is already crimping consumer spending.

The Riksbank kept interest rates at zero or lower for close to eight years before abruptly changing course last year, hiking the benchmark rate four times to 2.50%. (Reporting by Johan Ahlander; editing by Niklas POllard)