Housing Prices Swing Upward

The housing market appears to be brightening. In February, both apartment and house prices increased by just over one and a half percent. For apartments, this is significantly more than what is normal for the season.

The new figures are presented by the SBAB Booli Housing Price Index (HPI), showing that housing prices rose by 1.6 percent in February. Adjusted for normal seasonal effects and other temporary factors, prices increased by 0.1 percent.

With February’s price increase, housing prices are now just under ten percent below the peak levels from spring 2022.

“Housing prices usually rise in February, but for apartments, the increase this year was significantly larger than the historical average,” says Robert Boije, chief economist at SBAB.

Apartment prices rose in four out of six regions and most in Greater Gothenburg: up 3.9 percent. In Central Sweden, however, they fell by two percent.

The price increase for Sweden as a whole was significantly larger than what is normal for the season. Apartment prices are now just under seven percent below the peak levels from spring 2022.

Regarding houses, prices rose in five out of six regions, with the largest increase in Central Sweden (2.2 percent). House prices are now just over eleven percent below the 2022 peak levels.

“Notably, apartment prices in Gothenburg in February recovered much of the longer period of stagnation they have had compared to houses in the same region,” says Robert Boije.