Ice breaking in the housing market as sales rise

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Ice breaking in the housing market as sales rise
Photo: Lisa Hallgren/SvD/TT

December saw a thaw in the housing market - at least in terms of sales. The monthly figure was the highest since the pandemic year 2021. However, there were only small changes in prices.

The last month of the year saw small price movements in the housing market. At the national level, condominium prices fell by 0.6 percent and villa prices by 0.8 percent.

For the full year, this now meant essentially unchanged prices (up 0.2 percent) for both condominiums and villas. However, another clear difference is noted: the number of condominium sales increased by almost 5 percent compared with the same month in 2024.

Emerging faith in the future

Erik Wikander, CEO of Svensk Faktisförmedling, sees it as a sign of "emerging faith in the future" among buyers and sellers.

More people are talking about growth and confidence in the future, and the picture from many quarters is that 2026 will be a better year than 2025, he says, highlighting the interest rate cuts that have taken place and planned future tax cuts as contributing factors to this.

Just before Christmas, the government also announced that it would move ahead with easing amortization requirements and raising the mortgage ceiling. Erik Wikander believes this could further boost the housing market, particularly for smaller apartments, such as one- and two-bedroom units.

More people will start to dare to act, he says.

In addition to Svensk Faktisförmedling, several other large brokerage companies such as Bjurfors and Länsförsäkringar Faktisförmedling are seeing increased activity at property viewings.

Raises a warning

From several sources, housing prices are now expected to rise by around 5 percent in 2026. However, Erik Wikander raises a warning:

"What could dampen price developments is that we are in an election year, which usually brings uncertainty about which government we will get and what the policies will look like. So I think a range of 4–5 percent rather than 5–7 percent," he says.

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By TT News AgencyEnglish edition by Sweden Herald, adapted for our readers

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