Swedish Housing Market Remains Stagnant as Prices Adjust Slightly in August 2025
August 2025 sees stagnant prices in Sweden's housing market with minor fluctuations across different cities.
Key Points
- • Condominium prices fell by 0.3% in August while single-family homes rose 0.2%.
- • Stockholm experienced a significant drop in prices, while Malmö saw slight gains.
- • High supply of homes is keeping prices stable, with 13,800 homes sold in August.
- • Experts predict potential market recovery, although challenges remain.
In August 2025, the Swedish housing market exhibited signs of stagnation, with condominium prices decreasing by 0.3% while single-family home prices rose slightly by 0.2%. Major cities experienced varied results: in Stockholm, single-family home prices fell by 1.5%, and condominium prices dropped by 1.1%. However, Malmö showed resilience, with condominium prices increasing by 0.8% and single-family homes by 0.1%. In Gothenburg, prices remained stable compared to the previous month.
Despite significant buyer activity during weekends following the summer, the anticipated price movements remained minimal due to an unprecedented supply of homes on the market. According to Oskar Öholm, CEO of the Swedish Real Estate Agents Association, the current market dynamics are marked by cautious and selective behavior from potential buyers, exacerbated by high inventory levels. A total of 13,800 homes were sold in August, matching levels from 2024, indicating a steady pace in transactions despite the stagnant price environment.
As the market shifts, this summer recorded an uptick in villa sales, suggesting a potential reversal in buying trends. Many sellers are choosing to sell their existing homes before procuring new properties, contributing to extended sales processes. Marcus Svanberg, CEO of LF Real Estate Brokerage, noted that villas are becoming increasingly popular among buyers, signaling a shift in consumer interest. This trend was echoed by Johan Nordenfelt, Information Manager at Erik Olsson Real Estate Brokerage, who pointed out that the high number of new listings has led to increased supply that far outstrips demand.
Although the current environment appears stagnant, experts remain cautiously optimistic. Several brokerage firms believe housing prices are nearing their floor, with a gradual uptick in market activity expected in the coming months. Irja Amolin, Acting CEO at Bjurfors, observed signs of market softening, indicating that more transactions are taking place, albeit with buyers enjoying a wide selection of options. Given the backdrop of economic uncertainty and consumer caution, the Swedish housing market remains a focus for stakeholders looking for signs of stabilization and recovery.