Optimism & New Trends - Erik Holmberg's Analysis of the Housing Market Development

Hemnet's analyst Erik Holmberg provides insights into today's housing market and how it has changed in recent years. Longer selling times, more bidding below the asking price, and increased price expectations among buyers are characteristics of the current market. The latest interest rate cut has also bolstered optimism among buyers, which could lead to increased interest and rising final prices. In this analysis, Erik explains what this means for both sellers and buyers—and why it might be a good time to sell right now.

Erik Holmberg, Market Analyst at Hemnet

Today’s housing market differs in several ways from how it looked a few years ago. An important difference, and something sellers should consider today, is that it generally takes significantly longer to sell. Additionally, it's more common for bids to start below the asking price and for the property to sell at a price below that. Sometimes this is described as a "buyer’s market." However, it is crucial to emphasize that the final price is what matters, regardless of whether it is above or below the asking price. Just because the price is lower than the asking price doesn’t necessarily mean it’s a low price.

Unlike final prices, the average asking prices are at historically high levels. Many sellers list their properties at a price they are prepared to sell for under, which was very unusual three to four years ago.

For property speculators today, this is also something to keep in mind. It may be worth attending viewings for properties with asking prices slightly above the limit you’ve set for what you can afford.

Although today’s market is distinctly different from the heated market during the pandemic years, there are areas where we are back to similar levels. One of these areas is price expectations. In Hemnet’s Buyer Barometer for November, half of the buyers indicated they expect rising prices, which is the highest percentage since spring 2021. This optimism is one reason why the number of sales has surged recently. When buyers anticipate rising prices, they are more inclined to act rather than wait. The effect typically results in increased activity and rising prices, signaling that it may be a good time to sell now that buyers are more motivated to act.