Homes sell in record time in Sweden
Never before have homes in Sweden been on sale for such a short period of time. And it's no longer the villas with home offices that are flavour of the month, buyers are now favouring town apartments once again.
In January, it took an average of 14 days to sell an apartment, while the equivalent for villas was 18 days. This is, on average, one day less compared to the same month last year, Swedish news agency TT reported.
This is the fastest time recorded since 2014, when Swedish property portal Hemnet began measuring the length of time it took to sell a property. Back then, a villa that was put up for sale in January could have been on the market for a month before it was sold.
Properties selling one day faster than a year ago may seem like a marginal difference, but it can be seen as an indicator of how the rest of the year will turn out.
"January is normally a month when the market is starting up, and it usually gets faster in spring," said Erik Holmberg, an analyst at Hemnet.
Even if new homes come on to the market, the shorter sales time keeps supply down, creating a favourable situation for sellers but a tougher one for buyers.
"We have high demand in relation to the supply. There will be many interested parties per home for sale...As a buyer, you have to be a little more on your toes to keep up," said Holmberg.
For the situation to change, there would have to be a slowdown in demand or a sharp increase in the amount of homes coming on the market, he explained.
Focus on apartments
During the height of the pandemic, people were looking to buy houses and many sought refuge outside of towns and cities where space was more limited and Covid-19 case numbers were typically higher.
"Many people spent more time at home. You worked at home and it was more difficult to travel abroad. This increased the demand for living space in general and for villas in particular," said Holmberg.
But last autumn, buyers' interest shifted back to apartments.
"When [Covid] restrictions were removed, having a home office became less important, we got a more normal market where the pressure is highest on apartments in central locations," the analyst said.
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This is the fastest time recorded since 2014, when Swedish property portal Hemnet began measuring the length of time it took to sell a property. Back then, a villa that was put up for sale in January could have been on the market for a month before it was sold.
Properties selling one day faster than a year ago may seem like a marginal difference, but it can be seen as an indicator of how the rest of the year will turn out.
"January is normally a month when the market is starting up, and it usually gets faster in spring," said Erik Holmberg, an analyst at Hemnet.
Even if new homes come on to the market, the shorter sales time keeps supply down, creating a favourable situation for sellers but a tougher one for buyers."We have high demand in relation to the supply. There will be many interested parties per home for sale...As a buyer, you have to be a little more on your toes to keep up," said Holmberg.
For the situation to change, there would have to be a slowdown in demand or a sharp increase in the amount of homes coming on the market, he explained.
Focus on apartments
During the height of the pandemic, people were looking to buy houses and many sought refuge outside of towns and cities where space was more limited and Covid-19 case numbers were typically higher.
"Many people spent more time at home. You worked at home and it was more difficult to travel abroad. This increased the demand for living space in general and for villas in particular," said Holmberg.
But last autumn, buyers' interest shifted back to apartments.
"When [Covid] restrictions were removed, having a home office became less important, we got a more normal market where the pressure is highest on apartments in central locations," the analyst said.
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