The Swedish Central Bank's signals that there may be three interest rate cuts this year will lead to more housing transactions, experts predict.
However, one should not believe in a significant price increase, says SBAB's chief economist Robert Boije.
Last week, the news came that the Swedish Central Bank is opening up for more interest rate cuts this year than they previously said.
And this will increase activity on the housing market, according to, among others, SBAB's chief economist Robert Boije.
I think more people will dare to take the step to buy a home. So this message from the Swedish Central Bank can increase optimism.
Fastighetsbyrån's CEO Johan Engström is on the same track.
Our assessment is that there will be more housing transactions in the next six months.
Easier to sell
According to Robert Boije, it is primarily people who are already in the housing market who will buy a new home.
First-time buyers will still have a tough time ahead. Since housing prices are still high and interest rates are much higher than they were a few years ago.
The supply of homes is still record-high. Which has made it harder for homeowners to sell, says Robert Boije. But after the message from the Swedish Central Bank, it will become easier, he believes.
It will not be like previous years. But I think it will continue to be a gradual improvement.
Weak price increase
On the other hand, both of them believe that the message about an additional interest rate cut will not have any impact on housing prices.
We believe in a weak price increase ahead. Since we still have a high interest rate level and a high cost level, says Johan Engström.
A reduction in the repo rate primarily affects the variable mortgage rate, but it does not significantly affect housing prices. It is primarily the longer fixed mortgage rates that do. And they have already gone down and contributed to housing prices, says Robert Boije.
Both SBAB and Fastighetsbyrån believe that housing prices will increase by approximately 4 percent this year and 5 percent next year.
