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The figure that can boost the housing market

The deals on the housing market are expected to increase when inflation falls and interest rates are pressed down. Buyers may want to take advantage before prices rise.

» Updated: 16 July 2024, 14:11

» Published: 12 July 2024

The figure that can boost the housing market
Photo: Fredrik Persson/TT

Transactions on the housing market are expected to increase when inflation falls and interest rates are pressed down. Buyers may want to take advantage before prices rise.

The inflation report of 1.3 percent for June is the lowest measured figure by the Statistics Sweden since 2020. This indicates decreases in the repo rate and that households will have greater margins as real wages increase.

It's positive – it's exactly the message the market needs, says Johan Nordenfelt, information manager at Erik Olsson Real Estate Agency.

Sellers can increase

He receives support from Robert Boije, chief economist at the state-owned mortgage institute SBAB, who points out that the large supply will ease.

At the same time, both of them see that even more may want to sell now. But Robert Boije emphasizes that a large supply is not a problem if demand matches.

The question is which effect will dominate, he says.

More buyers in the summer

Johan Nordenfelt believes that the inflation report will make more people dare to act and already this summer get into buying mode. According to Nordenfelt, it's good to sell during the summer, as buyers who are looking for housing then are more goal-oriented.

If more homes are sold during the summer, it will also reduce potential selling pressure in the fall.

When the market expects rising housing prices, it's more people who want to take advantage of buying before they see housing prices going up, he says.

No major price increases

Neither Johan Nordenfelt nor Robert Boije believe in any major price increases.

The decisive factor for the market is not prices – but that people dare to make deals when economic planning looks easier, says Johan Nordenfelt.

The strength in the market will be reflected in a strong and active housing market. If we look at housing prices, they are quite high in a historical perspective. The price decreases that have been can be seen as restoring pandemic effects where households spent unusually much on housing.

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By TTThis article has been altered and translated by Sweden Herald

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