Swedish Brokerage Statistics’ figures for May show a decline in condominiums – 1 percent for the country as a whole, 2 percent in Stockholm, but no decrease for villas. Small changes, but Magnus Hjelmér, everyday economist at Ica Bank, still says this:
– I would probably say that it is the buyer’s market due to the huge range that prevails right now. The cost of housing is a big part of the household economy, and people have started to stick more to their wallets.
He continues:
– The sellers want to reap the incredible price increases we have had and maybe they have not used the holiday home they bought during the pandemic and want to sell. Now they notice an uphill.
Magnus Hjelmér believes that households can face significantly higher interest costs – the inflation figures from Statistics Sweden tomorrow Tuesday will be a guide:
– They set the pace for how the Riksbank decides on how much the repo rate will be raised on 30 June.
How should a worried homeowner act?
– Housing, transport and food are the biggest expenses in a household, and unfortunately they are exactly the ones that have moved away. You should review all your costs – go more collectively, try to eat cheaper and maybe put the construction of the terrace on pause, says Magnus Hjelmér.
In a report on Monday, Swedbank predicts that inflation will linger at high levels and provide a variable housing interest rate of 3.4 percent within a year, double today. Johan Grip, chief economist at the analysis company Prognoscentret, tells the news agency Direkt that this could lead to housing prices falling by 10-15 percent.
Housing economist Claudia Wörmann at SBAB also believes that one can talk about the buyer’s market:
– There is a lot for sale right now, the speculators can take longer to think and have time to compare different alternatives. Before, a home could be posted online on Tuesday and be gone on Friday.
She believes that there is a shift in the housing market that is affected by factors people can not influence – but that it is also about psychology.
– The seller wants to believe that it can continue as usual, the buyer expects sales. And there are quite a few who have not been in a situation like this before and get very nervous. Here, we who have been for a while have a responsibility to tell even about bad business we have done, not just about the fantastic rise of recent years.
How to navigate?
– Count on your finances and have reasonable expectations. The neighbor who got a little more for his apartment may also have bought it more expensive, points out Claudia Wörmann.
At real estate giant Svensk fastighetsförmedling, CEO Liza Nyberg does not want to talk about the buyer’s market:
– We are in a phase when sellers and buyers are a bit apart, a waiting situation. A lot is happening that concerns the private economy right now, the consequences of which are not really known.
She continues:
– I think we are in a more cautious market, but absolutely no major decline this year. A basic advice is to sell and buy at the same time, in the same market, to avoid too great risks, says Liza Nyberg.
Read more: Where can you afford to live – see DN’s housing guide