On August 20, the Central Bank (Riksbanken) decided to lower the interest rate by 0.25 percentage points to 3.50%. According to Länsförsäkringar's private economist, there is a high probability of 2-3 more interest rate cuts this year. [1] This is really good news that could mean thousands of kronor in lower interest costs for households with mortgages.
Record-High supply of apartments
Hemnet's buyer barometer shows that buyers are less confident in rising prices, and it seems that buyers are expecting price pressure due to increased supply. In fact, there is a record-high supply of apartments and houses for sale on Hemnet. Even according to Booli, the supply of housing is at an all-time high, with 70,965 homes searchable on Booli, the highest level since the record year of 2013 [2].
Slow Market So Far This Year
The number of published apartments has decreased by 20% since the beginning of the year compared to last year, but despite this, the supply on Hemnet is still at a record high, indicating that the market is slow-moving and that homes are selling at a slower pace, and buyers are cautious [3].
Increase in Housing Prices and Activity Expected
As TT has reported, housing prices are expected to rise by up to 10% by next summer, according to Han-Suck Song, associate professor of building and real estate economics at KTH. Erik Wikander, vice CEO of Svensk Fastighetsförmedling, and Johan Engström of Fastighetsbyrån believe that there will be increased interest from buyers and more housing transactions during the fall. Johan Engström thinks that the situation with high supply could change at the beginning of next year:
I believe that the increased activity during the fall will lead to a more normal supply.
