Swedish households have become even more optimistic about prospects for the country’s housing market, according to a survey from the country’s largest bank.

SEB AB’s Housing Price Indicator rose by 3 points to 14 in July, building on an 18-point jump the month earlier, according to data released on Monday. The metric — representing the difference between the proportion of respondents who believe in rising prices versus those who expect to see a fall — is now at the highest level since May last year, but still below its historical average of 32, SEB economists Daniel Bergvall and Marcus Widen said in a note.

The economists said the reading for July was “a bit surprising” given continued high inflation and higher rates. “An explanation to the better mood among households could be the fact that home prices have stabilized and risen somewhat in recent months,” they said.

The improving outlook among Swedes comes as home values in the Nordic nation rose for a fifth straight month in June, according to data from realtor organization Svensk Maklarstatistik. Still, most forecasters expect prices to decline until they are about 20% lower than a peak in early 2022.

Read More: Sweden Housing Prices Edge Higher Amid Signs of Stabilization

Sweden’s commercial property market continues to unnerve investors given a number of landlords are struggling to refinance maturing debt after years of leveraged growth.

--With assistance from Joel Rinneby.