In recent quarters, households have, to a greater extent, purchased shares and funds when the stock market has risen and sold when the stock market has fallen. According to the Affärsvärlden General Index, the stock market fell by 18.4 percent in the first quarter of 2020. This is the largest decrease in a single quarter since the stock market fell by 19.8 percent in the third quarter of 2011. In the first quarter of 2020, households’ net sales of listed shares and funds amounted to SEK 58 billion, which can be compared with SEK 15 billion in the third quarter of 2011.

As the stock market fell sharply in the first quarter, households’ financial wealth decreased, since large parts of households’ financial assets are share-based. Households’ financial net wealth fell by 10 percent in the first quarter of 2020 compared with the previous quarter, which corresponds to a decrease of SEK 1 123 billion.

High level of savings in bank accounts

In recent years, households’ net deposits in bank accounts have been substantial, despite a low interest rate. In the first quarter of 2020, net deposits in bank accounts reached an unprecedented level and amounted to SEK 86 billion. The second highest level of savings in bank accounts in a corresponding quarter was noted in 2007, when households’ savings amounted to SEK 38 billion.

There is a connection between households’ net deposits in bank accounts and net purchases of funds. In the first quarter of 2020, both major net deposits in bank accounts and major net sales of funds were noted. In the fourth quarter of 2019, the pattern was reversed, with low net deposits in bank accounts and large net purchases of funds.

Net purchases of new tenant-owned apartments decreased

Households’ net purchases of new tenant-owned apartments amounted to SEK 9 billion in the first quarter of 2020, which is the lowest level of net purchases for a first quarter in the past five years. Compared with the fourth quarter of 2019, net purchases in the first quarter of 2020 were barely half as large. New tenant-owned apartments consist of apartments with changing rights of tenancy to tenant-owned apartments and newly produced tenant-owned apartments. Households’ ownership of tenant-owned apartments is a financial asset and is included in the Savings Barometer. One- or two-dwelling buildings with ownership rights are not included, since they constitute real assets. Households’ assets in tenant-owned apartments amounted to SEK 2 927 billion at the end of the quarter.

Annual growth rate of loans rose

Households’ net borrowing, that is, new loans minus amortisations, amounted to SEK 51 billion in the first quarter of 2020, which is higher than in the corresponding quarter a year ago. During the quarter, the annual growth rate in loans increased and amounted to 4.9 percent. In the five most recent quarters, the annual growth rate of loans has hovered around five percent, which is a slowdown from 2016, when the growth rate was eight percent.

Households’ loans, which consist primarily of loans in bank and housing credit institutions and student loans, amounted to SEK 4 483 billion at the end of the first quarter.