New figures from Swedish Mäklarstatistik show rising condominium prices in February. While prices for condominiums rose by 0.4 percent, the increase for the residential market was 0.5 percent.
Most notable, however, is that the number of sales now continues to increase after a long period of little activity. In February, 10 percent more homes were sold than in the same period in 2023, and so far this year, the number of sales is now about the same as in 2019.
– It was a very good market in 2019 before we got the doped pandemic years, I think that is a very clear indicator, says Erik Wikander, vice president of Swedish real estate agency about sales.
Marcus Svanberg, CEO of Länsförsäkringar, speaks at the same time about a trend break:
“We are seeing the beginning of a trend break in the housing market in several medium-sized cities, where more and more people are now daring to take the step to move. As interest rates fall, we believe that buyers and sellers will find it increasingly easier to meet in terms of price,” he writes in a press release.
More people who go to screenings
Erik Wikander points out at the same time that among brokers there is now a clear difference in connection with, for example, viewings:
– There are many more on viewings, how long it takes from meeting customers to the home being sold.
The big question for both sellers and buyers is of course how prices will develop. In February, the average price per square meter in central Stockholm was just over SEK 104,000, while the average price for villas was almost SEK 6.8 million.
First interest rate cut – then price increase
Despite the increased activity, Erik Wikander does not believe that there will be a substantial price increase, at least not before the Riksbank has implemented interest rate cuts. From a market point of view, the current assessment is that the first one will take place in May or June at the earliest.
– I’m probably a little cautious there. We have a supply that needs to be grazed with sales that have been out for a long time. I think we have to get at least one, probably two reductions before we actually see an effect in the form of housing prices starting to be pushed upwards, he says.