“No thaw whatsoever” in the housing market

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Published 8 February 2024 at 14.16

Economics. SBAB and Booli's indicator The housing market temperature for January shows no signs of thaw at all. The situation is similar in Sweden's three metropolitan areas. The thing that contributes most to the low temperature is very long advertisement times. It takes about three times as long to sell a home today compared to just a couple of years ago.

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The housing market temperature shows an overall marginally worse situation for sellers of apartments in January. The worsening situation is mainly explained by longer advertisement times.

Among the few “glimps of light”, a smaller number of republished advertisements is noted. The situation is similar in all three metropolitan areas.

– Our indicator Bomarknadtempen does not show any thawing in the housing market yet. Possibly the Riksbank's announcement that interest rates may be on the way down even before the summer can soften the market a little. At the same time, many condominium associations need to continue to raise the monthly fees and households' real incomes are greatly eroded by the previously high inflation. I therefore do not think you should count on any spring fever in the housing market, even if there is probably a certain pent-up need to change homes, says Robert Boije, chief economist at SBAB, in a dispatch.

The housing market temperature for villas was in largely unchanged between December and January. As on the apartment side, a lower number of republished ads contributed to one of the few glimmers of light, while ad times increased. The situation for villas is similar in Sweden's three metropolitan areas.

– We have seen a radically changed housing market in a short time. Today, it takes about three times as long to sell a home compared to just a couple of years ago. It is important for home sellers to consider. Especially if you plan to buy a new home first and sell your existing home only afterwards, says Robert Boije.