Swedbank’s chief economist, Mattias Persson, predicts a slow but steady recovery for the Swedish economy, with a delayed comeback in both the housing market and overall purchasing power. While the initial timeline may have been miscalculated, Persson remains optimistic about the future trajectory.
The current buyer’s market, characterized by high supply and low demand, has left many sellers frustrated with unsold properties and lackluster open houses. However, Persson believes that a shift is on the horizon, likely to occur after the first half of the next year. Signs of increased activity, particularly in loan developments, hint at a positive trend in the housing market.
Persson advises households to prepare for the possibility of higher mortgage rates in the coming years, cautioning against expecting a return to the rock-bottom rates of the past decade. While fixed interest rates have declined, with a projected 3-month rate of 2.85% by June 2025, Persson does not rule out the potential for further decreases. Nevertheless, he stresses that excessively low rates are unlikely in the near future.
In essence, while the Swedish economy and housing market may have faced setbacks, the resilience and adaptability of both sectors are evident. As the landscape continues to evolve, individuals and stakeholders must remain vigilant, proactive, and open to the possibilities that lie ahead. The journey to recovery may be longer than anticipated, but with strategic planning and informed decision-making, brighter days are on the horizon for Sweden’s economic future.