The housing year 2022 began with record high prices, only to be subdued after the Riksbank’s interest rate increases in February 2023. Now both condominiums and villas have fallen by 15 percent since the price peak last spring.
When the big-city real estate agents’ forecasts fall, the supply of both condominiums and villas for sale increases during the first quarter of this year in Sweden’s three big cities, according to SBAB. Demand is also expected to increase for both condominiums and villas during the first quarter.
The majority of real estate agents expect that the prices of both condominiums and villas will remain stable. Compared to last quarter’s forecast, however, there is significantly greater optimism about the price trend.
Lower price segments attract more home buyers
In addition to the fact that it has become more expensive to borrow money, electricity prices also play a role. With winter’s soaring costs, large, energy-guzzling homes have become less attractive.
At the same time, it has made smaller homes at lower prices more attractive. IN The real estate agency latest realtor panel consisting of 510 realtors around Sweden, 60 percent of the respondents answer that homes in the “lower price segment” are the type of home that is most easily sold right now, that is, homes with a worse location and condition.
– It is usually said that it is better to move to a more expensive home when the market is sluggish and prices are falling, because relatively speaking the price drops more on the more expensive home. Now we can also see that homes in lower price segments are more easily sold. There is thus a double effect which means that those who want, and have the opportunity to, upgrade their accommodation are now in a good position, says Johan EngströmCEO at Fastighetsbyrån, in a press release.