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Record Supply in the Swedish housing marketThursday, 29 December 2011
The range of villas and condominiums that supplied in the booming Swedish market this year has been great especially since June.
This has been described by some Swedish real estate pundits as above normal but it is a matter of time to see how this will affect the prices of the houses given that despite the above normal supply Swedish house prices are said to have been over valued.
The question now is whether something is being done to thwart the real functioning of the housing market whereby supply does not reflect demand or some overzealous market speculators are driving the sector rather than that forces of demand and supply play remains a mystery.
AdvertisementAccording to figures from the housing site Bovision, the number of homes for sale, this year was 26 percent more than in 2010. The numbers of condominiums for sale have been 20 percent higher this year compared to last year. For next year there will still be very many homes for sale.
Normally, there is a decrease in the supply of housing in December compared to November. This has happened again this year. The supply of homes has fallen by 17 percent and condominiums with 18 percent. Compared to December last year, there are now 55 percent more homes up for sale and for condominiums; the figure is 44 percent, according data from Bovisions.
There are currently 16,198 houses and 12,026 flats for sale in the country. The big supply is not tied to the fact that there are houses standing for unsold, it is just that more houses where supplied hopping that the market will keep up.
At this moment, in December 2011, its takes 111 days to sell a house. Last December, it took an average of 131 days to sell a house.
By Scancomark.se Team
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