Erik Holmberg, Hemnet: Why the Housing Market Remains Strong in Uncertain Times

Global uncertainty has increased, and the economic outlook has become more uncertain in recent times. While it's possible that this will affect the housing market in Sweden going forward, the market has so far shown resilience.

At the end of last year, the proportion of homebuyers who believed in rising prices was at a record high of 54 percent. In April, this figure dropped to 35 percent, reflecting growing economic uncertainty that could impact the housing market.

Despite this, we have not yet seen any direct impact on the market, although anecdotally we hear about increased caution among potential buyers. Housing prices continued to rise in March, and the number of sales remains at relatively high levels.

Historically, global unrest has not directly affected the housing market unless it impacts household finances. Movements in the stock market have little influence on the housing market, and the economic effects of tariffs and trade barriers are difficult to predict. On the one hand, this could lead to a weakened economy, but on the other hand, the Swedish krona may strengthen, potentially resulting in lower inflation. All in all, this could very well lead to lower interest rates, which is the single most important factor for the housing market.

Finally, it is clear that all markets dislike uncertainty. However, despite this, housing is something that many people continue to prioritize during uncertain times. For those planning a property transaction, it is important to carefully consider their needs, financial conditions, and time perspective—regardless of the economic cycle or global situation.