The latest data from SBAB’s Booli Housing Price Index (HPI) reveals a nationwide increase in housing prices during the first month of the year. Adjusted for seasonal effects, prices rose by 2%, signaling a positive trend in the real estate market.

According to Robert Boije, SBAB’s chief economist, the bank predicts a 4-5% increase in housing prices by the end of the year. This optimistic outlook is supported by the slight decline in apartment prices and the modest rise in villa prices across the country.

One city that stands out in terms of price growth is Malmö, where apartment prices surged by 4.8%. Conversely, northern Sweden saw the highest increase in villa prices at 4%, while villa prices in Greater Stockholm experienced a slight decline of 1.4%.

Despite regional variations in villa prices, SBAB anticipates that the housing market will soon return to pre-interest rate hike price levels. Villa prices are currently over 12% lower than their peak in spring 2022, while apartment prices are nearly 4% below their previous highs.

SBAB’s data also reveals that apartment prices are on track to reach pre-inflation shock levels, with a projected return to pre-Riksbank interest rate hike prices by the end of the year. This optimistic forecast suggests a positive trajectory for the housing market in the coming months.

The table below provides a detailed breakdown of housing price changes across different regions in Sweden:

| Region | Index (Jan-25) | Change since 1m | Change since 3m | Change since 12m | Change since Year End | Change since Max |
|——————|—————-|—————–|—————–|——————|———————–|——————|
| Total | 1.86 | +2.0% | +0.3% | +4.2% | +2.0% | -9.5% |
| Apartments | 1.92 | +2.0% | +0.8% | +5.5% | +2.0% | -3.7% |
| Greater Stockholm| 1.79 | +1.6% | +0.2% | +5.6% | +1.6% | -3.2% |
| Greater Gothenburg| 1.87 | +2.5% | +0.6% | +5.2% | +2.5% | -5.9% |
| Greater Malmö | 2.10 | +4.8% | +3.9% | +7.7% | +4.8% | -0.2% |
| Northern Sweden | 2.21 | -0.5% | -3.0% | +0.7% | -0.5% | -8.3% |
| Central Sweden | 1.92 | +3.1% | +0.9% | +4.7% | +3.1% | -3.6% |
| Southern Sweden | 2.30 | +2.2% | +3.2% | +6.1% | +2.2% | -5.7% |
| Houses | 1.83 | +2.0% | +0.1% | +3.5% | +2.0% | -12.4% |

Source: SBAB

In conclusion, the housing market in Sweden is showing signs of resilience and growth, with prices expected to continue their upward trajectory throughout the year. Despite regional disparities, the overall trend points towards a return to pre-inflation shock price levels, offering hope for both buyers and sellers in the real estate market.

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