Home HomeSwedenLivingWorld world_2_fill WorldBusiness BusinessSports sports-soccer SportsEntertainmentEntertain

Large selection expected on the housing market this autumn

In August, the housing market usually takes off. And the supply looks like it will be substantial – paired with a large and pent-up need to move. We will have a continued stable small price increase, according to Hans Flink at Svensk Mäklarstatistik.

» Updated: 10 September 2024, 22:25

» Published: 04 August 2024

Large selection expected on the housing market this autumn
Photo: Janerik Henriksson/TT

During the first six months of the year, there have been small but clear price increases on housing. This is also expected in the autumn, according to Hans Flink.

The likely scenario is that we will have a continued stable small price increase. You can expect that there will be months where prices stand completely still. It's not unusual to see price increases in steps.

The Swedish Central Bank has signaled that there may be three more interest rate cuts this year.

If that doesn't happen, it will be a cold shower for many, says Flink.

A missed interest rate cut seems unrealistic to Flink, but three cuts could become two. However, it won't dramatically affect prices, he believes.

Since last year, housing sales have taken off.

What's most notable and probably also sustainable is that the number of sold housing units has increased significantly since last year's low level. We're back to a more normal, perhaps healthy, level when it comes to the number of sold housing units.

Pent-up Demand

In the spring, there has been a large supply of housing, and it's expected to continue. Changes in family, job, or education situations make many people enter the housing market.

At the same time, there's a large pent-up need to move. Those who didn't move last year, their need is still there. For some reason, they didn't make a move, they were uncertain about inflation, about interest rates. Now they know much more and maybe make a move, says Flink.

The housing market's supply should be seen in two parts, according to Erik Wikander, vice CEO of Svensk Fastighetsförmedling. What's come out this year and is priced according to the current market situation, and the older supply from previous years' record levels.

What's being put on the market now has a fairly high normality, and we see that the average sales times have decreased quite significantly during the first half of the year, he says.

The Supply is Growing

The reason why housing units haven't been sold may partly be due to too high price expectations, and partly that sellers haven't been active to get their sale through.

Johan Nordenfelt, information manager at Erik Olsson Fastighetsförmedling, believes that the supply after the summer will be large.

Initially, the supply will grow much more than demand.

Nordenfelt emphasizes that housing prices are already high, both historically and in terms of living costs. There won't be particularly large price increases going forward, he believes.

Tags
TTT
By TTThis article has been altered and translated by Sweden Herald

More news

New French obstacles for Airbnb
1 MIN READ

New French obstacles for Airbnb

The Government Seeks Support for Those Affected by Northvolt
1 MIN READ

The Government Seeks Support for Those Affected by Northvolt

The regional tax will be raised next year
1 MIN READ

The regional tax will be raised next year

Astra Zeneca's China Chief Arrested by Police
1 MIN READ

Astra Zeneca's China Chief Arrested by Police

More rate cuts - but risk of turmoil with Trump
2 MIN READ

More rate cuts - but risk of turmoil with Trump

Svantesson: Trump's policy may increase inflation
2 MIN READ

Svantesson: Trump's policy may increase inflation

Major Banks Lower Mortgage Rates
1 MIN READ

Major Banks Lower Mortgage Rates

Central Bank Economist: Central Bank Cuts Interest Rate Too Late
2 MIN READ

Central Bank Economist: Central Bank Cuts Interest Rate Too Late

How You Are Affected by Lowered Interest Rates
2 MIN READ

How You Are Affected by Lowered Interest Rates

Thedéen expects turmoil after Trump's victory
2 MIN READ

Thedéen expects turmoil after Trump's victory

Inflation upswing does not threaten interest rate cuts
3 MIN READ

Inflation upswing does not threaten interest rate cuts

Stockholm Stock Exchange rises after interest rate cut
1 MIN READ

Stockholm Stock Exchange rises after interest rate cut

Most up on Asian stock exchanges
1 MIN READ

Most up on Asian stock exchanges

This is how your wallet can be affected by Trump's victory
2 MIN READ

This is how your wallet can be affected by Trump's victory

Cheerful on Wall Street after Trump win
1 MIN READ

Cheerful on Wall Street after Trump win

Thousand-kronor notes to be picked up when the Central Bank increases the pace
3 MIN READ

Thousand-kronor notes to be picked up when the Central Bank increases the pace

Swish up and running again after disruption
1 MIN READ

Swish up and running again after disruption

Trump's company is soaring on the stock exchange
1 MIN READ

Trump's company is soaring on the stock exchange

Swedish Export Threatened by Trump Victory
2 MIN READ

Swedish Export Threatened by Trump Victory

Sameby's appeal against mining company rejected
1 MIN READ

Sameby's appeal against mining company rejected