The housing market in Sweden has been experiencing a cool trend since 2022, with the temperature of home sales still lingering in chilly territory. According to Robert Boije, chief economist at SBAB, the selling temperature of apartments in both Stockholm and Gothenburg’s city centers has returned to normal levels. However, for the country as a whole and major metropolitan areas, there is still some way to go before reaching a normal temperature.
Boije notes that factors such as the number of relisted ads, a large supply of homes, and extended sales times are holding back the market temperature. Despite this, there have been noticeable signs of normalization in the villa market, with bid premiums returning to average levels across Sweden and all major metropolitan areas.
Moreover, it has become easier to sell homes in the current market. Boije highlights that the selling temperature of the housing market, in terms of how easy it is to sell a property, continued to rise in November even as housing prices dropped. This trend aligns with expectations, as prices typically decrease in November due to seasonal factors. Boije believes that the lower inflation and interest rates are encouraging more people to engage in housing transactions, rather than significantly driving up prices.
Overall, while the housing market in Sweden is still undergoing some cooling effects, there are positive signs of normalization and increased activity. As the market adjusts to changing economic conditions, it is expected to find a more stable footing in the coming months.