Now the house price party is on again

Published 8 November 2024 at 08.46

Economy. Prices for condominiums rose significantly in October, new statistics from Swedish Mäklarstatistik show.
– In short, we are back at a level we haven't seen since Russia's invasion of Ukraine, says Erik Wikander, vice president of Swedish Real Estate Agency, to TT.

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Home prices rose by a whopping 2.1 percent at national level, while house prices fell by 0.7 percent.

Erik Wikander describes the increase as “remarkable” and “extremely large”.

Sales of both condominiums and villas increased by 17 percent compared to last autumn, which points to increased activity on the market.

– The housing market is getting hotter and more people than for a long time feel financially secure in realizing their dreams of moving. The thaw is most clearly felt for condominiums, where the number of sales increased sharply compared to last autumn, says Marcus Svanberg, CEO of Länsförsäkringar Fastighetsförmedling, in a press release.

Prices rose the most in Greater Stockholm, with an increase of 3.8 percent, while prices in central Stockholm increased by 0.6 percent. In Greater Gothenburg and central Malmö the price increases were more modest, and in central Gothenburg prices fell by 0.6 percent. On an annual basis, condominium prices in the whole country have increased by 4.3 percent.

Villa prices fell slightly in October, but in Greater Stockholm and Greater Gothenburg they rose by 0.3 and 0.1 percent, respectively. Annually, house prices have risen by 4.4 percent, while prices for holiday homes have increased by 3.5 percent.

Marcus Svanberg sees a positive development going forward, despite certain uncertainty factors:

– We do not judge that there will be any price rally next year, but the falling interest rates in combination with increasing real wages will give housing prices a clear boost upwards. The price trend can, however, be negatively affected by uncertainty factors such as the effects of Trump's election victory and interest rate trends in the outside world, he says.

Svanberg also welcomes the government's proposal to make it even easier to borrow.

– Flexible amortization rules for first-time buyers, increased mortgage ceilings and reduced moving tax would make more dreams of moving come true, he says.