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The privately owned home price index in Sweden (HOXSWE) increased 0.2 percent in November.
In Stockholm, the increase was 0.5 percent for condos and 0.2 percent for villas.
In Gothenburg, the condo index fell 0.1 percent, while the residential index rose 0.3 percent.
In Malmö, both the tenant and home ownership index increased by 1.4 and 1.5 percent, respectively.
However, there are signs that a plateau has been reached. During the first half of December in Stockholm, the index fell 0.7% in Stockholm, while it rose 1.1% in Gothenburg.
The number of housing transactions has been high during the fall. 24 percent more condos have been sold compared to two years ago. The corresponding figure for villas is 5 percent.
The evolution of prices has been significant throughout the country during the past year (increase of three months in parentheses):
merealm index: 10.4 percent (plus 2.6)
Condos in Sweden: 5.7 percent (2.3)
Condos in Stockholm: 5.4 percent (2.7)
Condos in Gothenburg: 3.7 percent (1.8)
Condos in Malmö: 8.9 percent (4.4)
Villas in Sweden: 13.3 percent (2.8)
Villas in Stockholm: 14.9 percent (5.3)
Villas in Gothenburg: 9.5 percent (2.8)
Villas in Malmö: 15.3 percent (4.5)
The great concern
– Despite being one of the years of greatest financial difficulty for the Swedish economy, it is not reflected in the housing market. It will be exciting to follow the housing market and how it develops through 2021. The main source of concern is rising unemployment. If more people have lower incomes, sooner or later it will be reflected in the housing market, says Claudia Wörmann, a housing economist at SBAB.
There’s a clear downside to low prices, he says.
– The thresholds for the housing market will be higher. I’m thinking especially of first-time buyers and everyone who reboots after a split, says Claudia Wörmann.
One factor could give the market new momentum this year: new tax rules on free capital gains deferral.
– Facilitates obtaining joint financing when buying a new home that is more expensive. It should increase mobility in the housing market, says Erik Olsson’s real estate agency.
Price increases 2021
Fredrik Kullman, CEO of Bjurfors Stockholm, does not think a plateau has been reached:
– For the year of housing 2021, I believe in continuous price increases. Mainly due to low interest rates and upwardly adjusted economic forecasts, but also due to market momentum. On the other hand, I do not expect price movements as large as this year.
