Telework, which is a consequence of the pandemic, caused the demand for houses to increase significantly. Many people wanted to live in a house and have access to their own garden, as they spent almost all of their time at home. The result of this was that many people paid far too much for their houses.
Hemnet is Sweden's most popular housing platform and a meeting place for brokers, housing sellers and buyers. In the first week of this year, there are more than twice as many houses for sale on Hemnet, compared to the same period last year.
Housing prices in Sweden have continued to fall in December, more so for houses compared to condominiums. Since the top listings last spring, housing prices have fallen by almost 17 percent. This is a direct consequence of the increased interest rates and rampant electricity prices.
I suspect that the next group who may be forced to sell their homes are those who are at high risk of being laid off in the coming recession. The Swedish Economic Institute assesses that the Swedish economy will enter a recession in 2023, while I claim that we are already there.
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