In July, the prices of old apartments fell by 2.6 percent in the whole country compared to last year. In the capital region, the decrease compared to last year was even greater at 3.3 percent. In the Pk region, prices also decreased by 0.4 percent from June’s readings.
Pellervo’s economic research senior economist Veera Holappa says the statistics were disappointing.
“The latest statistical publication was disappointing for the capital region. It was expected that there, too, housing sales would have finally risen more. The rest of Finland has already weathered the worst,” says Holappa at Markkinaaraad.
Actian sales director of personal customer business Camilla Karlberg says that the housing market is becoming more active and there are significantly more mortgage applications than before.
“Some have a pressing need to buy a bigger apartment, but at the same time we think very carefully about what kind of apartment to buy. Requirements have also decreased. Customers clearly want to buy cheaper apartments and slightly smaller apartments, but the prices of apartment sellers and buyers do not match, especially in the capital region.”
Karlberg estimates that Finns no longer want to spend as much money on housing as before.
“We are ready to accept that the apartment can have fewer square meters and we think that there is more to life than just walls.”
The Central Association of Real Estate Brokerage managing director Tuomas Viljamaa reminds that after the financial crisis housing prices rose sharply.
“It is natural that when the economy changes, the drops are strong. In the downward price development of apartments, there has been a repair movement going on, and according to our analysis, the repair movement is starting to end.”
According to Viljamaa, apartments have also been built heavily, but as housing starts shrink, the oversupply is starting to dissipate.
Watch the full discussion in the video above.
Source: www.arvopaperi.fi
