Home prices continue to rise significantly. At the same time, the supply is increasing and more real estate transactions are being made, according to new statistics.
This can benefit both buyers and sellers at the same time.
During May, the price of apartments rose by 1.6 percent compared to the previous month, while villa prices increased by 1.2 percent, according to Svensk Mäklarstatistik's monthly measurements. Earlier statistics from the real estate site Booli showed significantly lower price increases in May.
Since the signals about a rate cut came early in the spring, the housing market has awakened robustly. In three months, the price increase for apartments has exceeded five percent, according to Svensk Mäklarstatistik.
This has also led to cautious sellers now listing their homes for sale. The supply is large, but buyers are also willing to pay more, according to the statistics.
"We seem to have something as unusual as a market for buyers and sellers at the same time. The supply is unusually large, but more deals are being made and prices are rising," says Oskar Öholm, CEO of Mäklarsamfundet, in a comment.
So far this year, 67,000 real estate transactions have been made, compared to 59,600 at the same time last year.
The real estate agencies themselves are also noticing a clear increase in supply.
"Extra clearly is the increase in speculators and bidders in May," says Erik Wikander, Vice CEO of Svensk Fastighetsförmedling.
At the same time, the large supply may slow down the price increase going forward, some believe.
"Now that the supply is significantly larger than it was during the past year, and there are more homes to choose from, prices cannot be pushed up at the same rate as in recent months," says Andreas Moritz, CEO of Skandiamäklarna.
Prices are still clearly below the peak levels of over two years ago, according to Per-Arne Sandegren at Svensk Mäklarstatistik. What can dampen an increasing price development is that the cost structure is completely different now, especially for villa buyers.
