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Property market in Sweden stable, but the elections may change that: brokers

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Property market in Sweden stable, but the elections may change that: brokers
Property prices remained stable in Stockholm over the summer. Photo: Tomas Oneborg/SvD/TT
16:40 CEST+02:00
Despite unusually hot weather, major sports events, and tighter mortgage rules, the Swedish property market remained stable this summer. But property agents believe the September elections may change things.

Election campaigning ahead of Sweden's September 9th vote for parliament may have a dampening effect on the housing market in the near future, says Marcus Svanberg, CEO of Länsförsäkringar Fastighetsförmedling.

He predicts that both buyers and sellers may hold off on making any hasty decisions until after the election. They may instead wait and see what the outcome is of various political campaign proposals such as abolishing tighter mortgage rules, or cutting taxes for moving house or tax deductions on interest rates.

But on the other hand, discussions about housing policies can also pave the way for further uncertainty for consumers, Johan Engström, CEO Fastighetsbyrån argues. That can complicate future deals.

"What we need is a long-term, bipartisan settlement as soon as possible after the elections," he says.

PREMIUM MAP: How many square metres one million kronor buys you in Sweden

However, he also predicts that the supply of homes will be high, as it is difficult for both sellers and buyers to know what a reasonable price level is. For the ones brave enough to take the plunge and sell or buy a new home, there are still good chances to make a good deal, Engström predicts.

Fredrik Kjell, CEO at HusmanHagberg Sweden, agrees that the range of housing will remain high during the autumn and that high demand and stable prices are good both for sellers and buyers.

He believes the election will provide more clarity as to what the political situation will look like in the coming four years, and the market will adjust to those expectations: "Most importantly, politicians are looking at the lock-in effect that exists today in order to facilitate mobility in the housing market – it favours everyone."

According to Svensk Mäklarstatistik, an organization which provides real estate statistics, apartment prices fell one percent in Greater Stockholm in July compared to the previous month, while in Greater Gothenburg and Greater Malmö the prices increased by one percent and three percent respectively. The prices for detached homes remained unchanged in all three areas in July.

Nationally, apartment prices fell six percent over the past year, and detached homes one percent.

We have just created and published an interactive map of Sweden that lets Members of The Local compare how much one million kronor ($110,000) gets you in all areas of Sweden. Check it out here.

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