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On Friday, the analytics company Valueguard publishes the so-called HOX index for the three largest cities in the country, Stockholm, Gothenburg and Malmö.
The survey reports the development of condos and villas based on sales statistics from Swedish Real Estate Statistics.
The curves show that house prices have fully recovered from the temporary decline this spring, linked to the outbreak of the corona pandemic.
For August, the analysis company Valueguard reports record figures for the third city in the country. Condos were up 1.4 percent and home prices were up 2.1 percent.
Prices are skyrocketing
So far this year, condos have increased by an average of five percent in price, villas by double.
The vacation homes are doing well too. In Malmö, a 15% increase in prices is reported.
The situation is described as similar in many other places in southern Sweden.
According to Mattias Larsson, CEO of Bjurfors in Skåne, the strong development is due to high demand in combination with low supply.
The fact that the interest rate is kept low also serves as additional rocket fuel in stores.
During the summer, the pressure on brokerage offices is reported to have been unusually high. Bjurfors reports a 25 percent increase in sales compared to the same period last year.
– A lot of people celebrated parties at home and made up time and then the issue of housing naturally came into the spotlight, says Mattias Larsson.
Strong continuation
Other factors that may have affected the need for housing are that the duties either led us to separate more or that we realize that we need more rooms when both in the family work from home.
Mattias Larsson sees a strong and continuous market during the fall.
– I won’t be surprised if prices are up another couple of percent when we get there in December, he says.
According to Mattias Larsson, runners felt the pandemic for about 2-3 weeks this spring.
– Then there was moderation in demand. Then he continued to our surprise as much as before, he says.
According to Mattias Larsson, there are no areas that are more interesting than others.
– Everything goes well and as a client it is important to be part of the shifts. An average item is only available for 9-10 days before it is sold.
Tip: be careful
Mattias Larsson’s advice to speculators is to read well ahead of time and be happy to have a bank loan promise ready.
Future interest rates are expected to remain at continued low levels.
– But annual increases of ten percent are not very healthy in the long run. This is a development that is surprising, says Mattias Larsson.
What can stop this?
– The government can come in and review interest deductions. It can also interfere with property taxes.
