The Swedish housing market is experiencing a lull in price changes, presenting potential buying opportunities. Despite minimal price shifts in August, interest in property viewings has surged, indicating a possible market shift. A potential interest rate cut by the Riksbank could further stimulate the market, though it's not deemed crucial.
Stagnant Housing Market Attracts More Buyers
Stagnant Housing Market Attracts More Buyers
The price development in the housing market has come to a halt. However, stagnant prices may present a buying opportunity, according to real estate agents.
August figures from Svensk Mäklarstatistik show a stagnant housing market. Both condominiums (down 0.3 percent) and houses (up 0.2 percent) show very marginal changes compared to the previous month.
Compared to a year ago, condominium prices have only increased by 0.2 percent from a national perspective.
"We have had a somewhat locked market where sellers have been reluctant to release their properties because they see that they are not making the profits they have historically. There has also been an oversupply for a longer period," assesses Irja Amolin, acting CEO of the real estate firm Bjurfors.
A Change
At the same time, a change is underway. During the major viewing weekend in August, a growing interest was noticeable, and according to Irja Amolin, visitor levels not seen in several years were achieved.
"The expectation is starting to come down, and I would say that is the first step. I don't think there will be a huge price increase."
A potential interest rate cut by the Riksbank later in September would be beneficial but not decisive for price development, she assesses.
Interest Rate Not Decisive
"The interest rate has now come down to such a level that an additional cut would rather be the icing on the cake. If the rate remains, it would not act as a deterrent."
At current levels, Irja Amolin even sees it as a favorable buying opportunity for a long-term buyer.
"We have never had so many properties for sale, so as a buyer, you have a lot to choose from, while there hasn't been much price development recently."