The expert before the home purchase: “It’s a warning bell”

At the end of August, the housing market usually picks up again after the summer.
Private economist Américo Fernández goes through what is important to consider and how he thinks the market will develop in the future.
– What you can expect is that maybe it won’t be that much tougher or worse than it is right now, he says.

The year 2022 saw prices in the housing market fall due to the economy being tough for many households. While the first half of 2023, the market was more difficult to read, says private economist Américo Fernández.

– If you have to take a stand, it’s still a buyer’s market. Above all when we see that house prices have gone down and most things point to another slight downward pressure on house prices in the autumn and then start a slow recovery.

Despite that, Américo Fernández does not think that you should wait to sell if you need to.

– It is the needs that should rule. Most will still buy and sell on the same market. So you may sell for a little lower than you hoped for, but you will still buy at a lower price as well.

“Read the annual report”

Américo Fernández’s tip for you who are going to buy a home is to set a ceiling that you stick to during the bidding. And put money aside for a housing buffer so you can cope with higher interest rates and electricity prices this winter.

Something else you should do before buying a home is to read the association’s annual report. One thing to look for is the debt per square foot.

– You have to read the annual report. It might sound really boring to do. But there are some rules of thumb, around SEK 10,000 in debt per square meter, then a warning bell should ring. It is a very high level of indebtedness.

Newly produced apartments usually have a higher level of indebtedness and are therefore interest-rate sensitive, and there is a risk that the fee will eventually have to be increased. What you should check with an older apartment is if, for example, a change of trunk or a facade renovation is planned. Even that can be a signal of fee increases, says Américo Fernández.

Then the interest rate turns downwards

In order to get the best interest rate possible, it is important to be able to show that you have a savings history. And the more you collect at a bank, the better interest they should be able to offer. But Américo Fernández believes that the peak should soon be reached.

– What you can expect is that maybe it won’t be that much tougher or worse than it is right now. One or two more raises, that’s where the top is. I would say the mortgage interest will land at around 5 percent. But then one should expect that that situation will apply for a while before it starts to decline, perhaps around the turn of the year 2024.

– If you can afford to take out a loan right now, that’s a statement of strength. This means that you will definitely feel that things are going better in the next year. If you manage this period, then it is very positive.