The over priced Swedish housing market start seeing red again?

Thursday, 14 June 2012
The recovery in the Swedish housing market was behaving as if there was going to be a steady rebound but that seem to have been wishful thinking as worry in the sector seem to be returning.

Brokerage manager, Erik Olsson believes that there is a give away sale on Swedish houses homes right now, according to media reports.

Last year was a tough year in the Swedish housing market. Sales slowed and prices fell. This is despite the hard factors such as interest rate, disposable income and employment being stable.

"What made that prices went down by ten percent was because we were worried, "said Erik Olsson, president of brokerage firm with the same name.

At the beginning of the year, there were positive signs from the housing market. The most acute debt crisis was believed to have blown over, stock markets rose and brokers testified to better days coming in the market.

But events in recent weeks have brought in new concerns. Stockholm Stock Exchange has fallen and now stands at minus for his year. Spain has been forced to take an emergency loan to rescue their troubled banks and an increasing number of analysts are talking about an upcoming Greek exit from the Euro.

"We talk more about Greece and Spain than in the past. In the New Year fears for the uncertainty fell to about five percent. Now there is the feeling that it is increasing again. People react quickly on this stuff, "said Erik Olsson.

Right now there is a wide selection in the market that feels the increasing unrest and such uncertainty can cause both sellers and buyers to pull cold feet, Erik Olsson thinks.
"The effect is that you want to wait, so both buyers and sellers get anxious. Then there will be fewer deals, "he says.

On Friday Mäklarstatistik (real estate statistics) will be released and Valueguard’s new figures boprisutvecklingen (house price development) in May will also be presented. Erik Olsson believes that prices will fall somewhat in the near future. Only when the storm clouds are cleared would the curve start turning upwards, he believes.

With growing uncertainty in Spain, Italy, Greece and the U.S., even if there is bad news in Spain or not there will be tough time in 20 years to come, contends Olsson.

"Overall, I think that people should buy their new home when they need it. These fluctuations will not affect a purchase. Should you however sell without buying something new? That maybe should wait, "he continues.
By Scancomark.se Team

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