As a result of the pandemic and its subsequent measures to tone down negative effects on society, massive support packages have been launched in all major economies, in various forms and scope. The subsidies have not been withdrawn and even less are the results completely clear, but what we can see is that homeowners have been big winners the past year. This is something most people may not think of. New national villa statistics speak for themselves. Is it due to national pandemic measures or is there something else behind it?
Government Agency Statistics Sweden, Statistics Sweden, is the world-unique agency that keeps statistics and handles data in a record number of areas. This week, the latest figures for single-family homes were released, what are known in everyday speech as villas and terraced houses. The statistics are striking, not only for those who own a villa today, it is also striking for those with house dreams and those who only see it from a societal perspective.
At nation level, house prices rose by 5 percent during the third quarter, compared with the previous quarter. On the other hand, if you compare with the same quarter the year before, ie the third quarter of 2020, house prices have risen as much as 20 percent. This refers to permanent accommodation in villas, semi-detached, terraced or chain houses.
An average villa in Sweden costs 3.9 million, but the range is large and, as expected, prices are highest in the metropolitan regions. Greater Stockholm tops there with SEK 7.2 million.
The prices of holiday homes have risen almost as much, by 19 percent. 2.4 million is now the price for an average holiday home in Sweden.
It is not possible to say exactly what the price increases are due to, but many agree that some factors probably play a major role. Some of the factors that are believed to be of great importance are population growth, increased interest in living in detached houses and that new construction is lagging behind in relation to demand.
Voices in politics are increasingly heard in this area. It is seen as a problem that the threshold for entering the housing market is raised and that the supply of single-family homes should be improved. More construction is one way, with different solutions. The last word has not yet been said and it will probably be possible to follow developments both inside and outside politics.
In savings and planning of personal finances, many people have their home as their absolute largest financial exposure. It is not right or wrong, as long as you know about it and understand what it means. It may be extra important if you are going or have recently made a change, moved or buy for the first time. In the same way, it is important in all types of investments to know what you are doing and exposing yourself to. It can make you feel more confident in your choices and more confident in the changes that are taking place. Anyone who makes investments via SBP Nordic’s platform always receives information about the loan and the project. Always do your own analysis and assessment, in all investments.
