The prices of condominiums and villas fell slightly in January, according to Swedish real estate statistics.
On an annual basis, prices have still increased significantly, but concerns are gathering about increased inflation and missing interest rate cuts.
“You take good time and have a lot to choose from,” says Hans Flink, business development manager at Swedish Real Estate Statistics.
Although prices for both condominiums and villas decreased somewhat throughout the country in January, prices have generally increased on an annual basis, 5.7 percent for tenant -owners and 4.2 for villas.
– There is a very large selection so the buyer has a lot to choose from and you do not have this stress anymore. If we look at the sales time when an item is posted on the market until it is sold, it is twice as long as 2019-2020, says Hans Flink, Business Development Manager at Swedish Real Estate Statistics.
“Good if it takes some time”
His Flink also sees a calmed behavior with the buyers, slower business is being done now:
– It’s pretty healthy that it takes time. This is a big purchase decision. You have to check the item one, two, three times before switching on. It is good if it then takes some time.
Swedish Real Estate Statistics describes a location where buyers and sellers find each other earlier in a housing deal:
– The fact that the volumes are so large means that buyers and sellers find each other. On the other hand, you are not so keen on making a lot of bids, we see that when we measure bid premiums and brush effect, it is quite close to the starting price, says Hans Flink.
Concern for Swedish housing market
But there may be clouds of concern on the horizon for the Swedish housing market. On the one hand, inflation rose in January and the Riksbank announced this week that there are no more interest reductions. The near future. And in a troubled world there are other factors that can play.
– For example, if the United States is facing customs against Europe and Europe contrasts with tariffs, US goods will be more expensive and inflation will increase. Then you may not lower the policy rate and thus not the housing rate, which many may have included in their calculations. It might be able to dampen the interest in the housing market, says Hans Flink.