June offered relatively small price increases. The prices of condominiums rose by 0.2 percent compared to May, while the prices of villas increased by 0.7 percent, according to Svensk Mäklarstatistik’s monthly survey.
– Apart from the pandemic years, it usually looks like this in June, that condominium prices basically stand still, while villa prices go up a little, says Hans Flink.
On an annual basis, condominium prices have climbed 2.4 percent and house prices 1.4 percent. The prices of holiday homes, on the other hand, have fallen by 1.7 percent in one year.
The big cities driving
That the housing market has come to life, after the Riksbank’s interest rate cut in May and the forecast of up to three cuts this autumn, is clear. In three months, the price increase for condominiums is 3.4 percent and for villas 3.0 percent.
– In the big cities, it is driven even more. Housing rights in Greater Stockholm and Greater Gothenburg have actually gone up 7 percent since the turn of the year and villas 6 percent, says Hans Flink.
The number of housing transactions also continues to rise. During the second quarter, 44,700 homes were sold – an increase of 14 percent compared to the same period in 2023.
In total, 82,100 homes have been sold so far this year, which is an increase of 12 percent.
– It is a normalized market now. During the pandemic there were far too many sales and in the last two years there have been too few. We have a pent-up need to move and now we are seeing how it is grazed, says Flink.
“Comparatively high”
Johan Nordenfelt, head of information at the Erik Olsson real estate agency, believes in a soft landing “where inflation and interest rates fall roughly as the housing market expects”.
“We still expect the strength to show itself in the form of many homes being sold, rather than prices rising particularly much because today’s home prices are comparatively high if you take the interest rate into account,” he writes in an email.
Marcus Svanberg, CEO of Länsförsäkringar Fastighetsförmedling, makes a similar analysis:
“Interest rates are on the way down and this means that more Swedes feel secure about buying a new home.”