2 days ago
What's the latest on Swedish property prices?
Swedish property prices saw a modest increase in May. Why was that, and what could make them rise in the future?
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Are property prices rising or falling?
Rising, but not by much. In May, prices for apartments or bostadsrätter rose by just 0.1 percent compared to the previous month, while detached houses or villor saw a slightly higher increase of 0.5 percent. That's according to figures from estate agent organisation Svensk Mäklarstatistik.
The number of houses sold increased by five percent when compared to May last year, with around 6,300 villor selling last month. Roughly 9,800 apartments changed hands, which was a decrease of eight percent when compared to May 2024.
The average price for a detached house last month also varied wildly. In greater Stockholm a villa cost an average of 7.6 million last month, while you would have saved two million kronor by buying in greater Gothenburg (5.6 million) or greater Malmö (5.4 million).
The figures for May roughly follow the trend for the spring so far, with prices rising marginally each month.
Where there any regional differences?
Yes. In both the greater Stockholm area and in central Stockholm, prices for apartments were essentially unchanged in May. In the greater Gothenburg area they saw a 0.5 percent increase, with central Gothenburg, greater Malmö and central Malmö all seeing a rise of almost 1 percent.
There were also regional differences in house prices. Greater Stockholm and greater Malmö both saw increases of around 0.5 percent, with prices in Gothenburg remaining unchanged.
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Why haven't prices gone up more?
According to the group's CEO Oskar Öholm, who described the figures for May as 'a cautious upturn,' the modest price increases reflect buyer psychology more than a fundamental issue with the housing market. He identified two major factors as geopolitical instability, as well as record-high supply of properties up for sale.
"In a situation with geopolitical instability and high supply, uncertainty weighs heavily."
What could make prices rise?
The Riksbank, Sweden's central bank, is due to make an announcement on the key interest rate later this month. It's not yet clear if they will decide to keep it the same at 2.25 percent, where it has been since February, or cut it, perhaps by 0.25 percentage points to 2 percent.
A number of experts from major Swedish banks are predicting that the Riksbank will cut the rate on June 18th, including experts from Nordea, Handelsbanken, Länsförsäkringar, Swedbank and Danske Bank.
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If the central bank does cut the rate in June, mortgage rates would follow, which in turn would lead to higher property prices.
There is another key interest rate announcement scheduled for August.
How many properties are on sale?
Last month, Swedish property site Hemnet recorded its highest ever number of property ads – 82,071, or an increase of 14 percent compared to the same time last year. That's also the first time the site has had more than 80,000 active ads at once.
The high number of ads is widespread across the country, with 15 of 21 counties seeing individual monthly records in May.
According to Hemnet market analyst Erik Holmberg, the reason for the high number of ads is partly due to the fact that properties are taking a long time to sell.
'Pricewise, the market is stable, but it's characterised by long waiting times, which has resulted in the time to sell increasing and record-high supply,' he wrote in a press statement.
The Västerbotten region saw the largest increase in the number of properties on sale, up 45 percent on last year, which, Holmberg said, is probably linked to battery factory Northvolt's recent bankruptcy.
'These developments are probably related to the instability which has occurred in the Skellefteå property market after reports of economic problems related to the Northvolt factory,' he said.
