Changing housing market impacts both buyers and seller

Even though many of us have returned to our daily routines after the vacation, there are hopefully still many sunny days ahead. Summer tends to linger a bit longer than our time off, and with fall approaching, the focus is shifting back to work, studies—and for many, the housing market. After nearly half a decade of challenges caused by the pandemic, a turbulent global environment, and economic uncertainty, both real estate agents and industry analysts are signaling that the housing market is starting to return to more normal levels. Fall is also a time when many begin to consider reviewing their housing situation.

Let’s take a closer look at what’s happening in the market and how it might impact you as a buyer or seller of property.

Changes in Interest Rates

One of the most significant factors contributing to the positive development in the housing market is the reduced key interest rate. With lower key rates, several banks have chosen to lower their mortgage rates, making it cheaper to borrow money for purchasing a property. For buyers, this means it's easier to enter the market or upgrade to a larger home. For sellers, increased demand can lead to quicker sales and potentially higher final prices.

Long-Term Planning for Households

The overall economic situation for Swedes has improved, largely due to decreasing inflation. As households gain more financial flexibility and the pandemic fades further into the past, more people are willing to plan for the long term again, which boosts both buying interest and willingness to sell.

Supply and Demand

Despite the improved market, there is still a large inventory of unsold homes, providing buyers with a wide selection to choose from and making it easier to find suitable properties within various budget ranges. At the same time, we are seeing increased interest in attending viewings, indicating that more people are ready to make transactions. For sellers, this may mean tougher competition, but it also presents an opportunity to reach more interested buyers, which could drive up prices.

In Summary

We are witnessing a market that is stabilizing and offering new opportunities for both buyers and sellers. As often happens, long-term planning pays off. Ensuring you have a sufficient buffer to weather tougher periods and avoid being forced to sell your property during market downturns can make a significant difference for your finances.

Whether you are planning to change your home or not, there are reasons to be optimistic about the future, both in terms of the economic situation and the housing market. We hope you enjoy the late summer! And as always, feel free to reach out to our support team if you have any questions or concerns. We are here to help!

Return per strategy

Here we present as usual the total average return for Balanced and Yield for August 2023–July 2024. The Balanced savings strategy has delivered an average return of 7.14% the past twelve months and Yield has delivered 8.10% accordingly.