For the third month in a row, condominium prices are rising nationally. At the same time, there has been a stabilization in the housing market with unchanged figures.
Swedish brokerage statistics’ April figures show that the initial trend in 2023 will continue. Residential property prices at national level are rising by one percent and in three months a price rise of four percent is now noted. This at the same time as the housing market shows small movements with no price change during the last month at the national level.
– It’s not a buying party, but we see that the uncertain market we’ve had for a long time is now starting to change, says Per-Arne Sandegren, head of analysis at Svensk mäklarstatistik to TT.
Photo: TT
The explanation, according to Per-Arne Sandegren, is that despite rising interest rates and otherwise increasingly higher living costs for households, reality is still catching up with a need to move.
– During such a long period of uncertainty and waiting, a pent-up need to move builds up. We continue to get married, have children or study elsewhere and need to move regardless of the state of the economy, so part of the explanation may be the need to move.
The worst behind us
Marcus Svanberg, managing director of Länsförsäkringar fättisförmedling, is on the same line.
“Our assessment is that the biggest price drop is behind us and that the situation on the housing market will stabilize during the early summer. After a year of rising interest rates, a sharp drop in prices and therefore different images of the value of homes, buyers and sellers now have an easier time meeting each other in terms of price,” says he in a press release.
After the latest interest rate hike, the Riksbank has signaled that another interest rate hike is to be expected. The increase in the key interest rate and, in the end, ever-increasing housing loan costs hit above all the housing market, points out Per-Arne Sandegren.
– The banks still have high interest rate calculations and villas usually have a higher average price. That is why we see a certain difference in comparison where the housing market has “only” stabilized, he points out in comparison to the development for condominiums.
Early summer lull?
A couple of intense weeks now await, where the month of May historically usually means high sales figures. During April, however, a full 29 percent fewer condominiums and 27 percent fewer villas were sold compared to the same period in 2022.
– We assess that it will likely be significantly lower than last year also in May, says Per-Arne Sandegren.