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Swedish holiday homes facing a hard sell as uncertainty make people to scale back of such luxury


  

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Saturday, 07 August 2011
The demand and prices of Swedish holiday homes have been on the very high side of the market. This led to investors in the sector to step up supply which led to a record high this year compared to last year. But as the economic sentiments start turning sour, in many parts of the country, many people are being forced to sell and at lower prices too.

By the first of August there were 7190 homes for sale throughout the Sweden. That was a sharp increase compared to same time last year when the figure was 4921, according to data the real dealer Hemnet did for the Swedish business daily Dagens Industri.

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According to regions, Norrt�lje has by far the largest supply of holiday homes for sale, some 241 as per 1 August. This followed by Borgholm in �land, with 136 homes advertised on Hemnet, followed by V�rmd� outside Stockholm, with 133 homes advertised.

The placing of mortgage ceiling as well as persistent rise in interest rates are some of the factors being blamed for the fall in demand. Others blame persistent increase in supply in anticipation that the growing demand in the past years will absorb the supplies.

Meanwhile, the long winter, short spring season has made many items to come up for sale for a short time. It is also about a generational shift, according to analysts with deep knowledge in the sector.

"Home owners have become older, and many can not be bothered to keep their houses. There is the question whether there is a new generation of holiday cottage owners who want to take over the houses or if they instead choose to travel with camper, a market that is increasing rapidly, "said market analysts to Dagens Industri.

Despite the sluggish market, statistics from the Hemnet also show that price is up this year. In the ten municipalities with the most homes for sale, including Norrt�lje, Borgholm, V�rmd� and Gotland, there has been a price increase from Skr1.63 million last year to Skr1.84 million this year according to august data.

"There is an in-built belief that holiday houses will increase in value regardless of the economic situation and the price is based on it. The spring season was characterized by high expectations from the sellers' side, while the buyers were sniffing the morning air for falling prices. There are many more homes this year sold for the starting price compared to last year, "says Lasse Tapper, a real estate expert.
By Scancomark.se Team


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