Real estate agents: rise in housing prices calming down, property market still normal

print this

In contrast with the situation in many other countries, the prices for homes have not declined in Finland as yet, even though they are showing signs of significant slow-down, after three years of burgeoning growth.
      According to the Finnish Real Estate Dealers Association, the prices for flats in old apartment buildings rose by 0.5 per cent nationwide over the period from January through March.
      In Helsinki the increase was 2.5 per cent, in Espoo 4.3 per cent, while in Vantaa the prices were up as much as 7.3 per cent.
      In several other cities, including Turku, Jyväskylä, Kuopio, and Oulu, the prices for residences turned downwards.
      The statistics gathered by the Finnish Real Estate Dealers Association cover the sales records of the four largest real estate agents as well as the sales data of all smaller agents who belong to the Finnish Association of Real Estate Agents SKVL, accounting for some 75 per cent of the country’s home sales.
     
The number of homes sold over the first quarter of the current year was a little lower than that in the corresponding period last year. Over the period from January through March, a total of 20,500 homes were sold in the entire country. The figure is about 300 or 1.5 per cent lower than in the same period in 2007.
      ”In 2007, the first quarter was unusually busy. Including April, we will now reach at least the same level as last year, maybe even higher”, believes Jukka Malila, the director of the Finnish Real Estate Dealers Association.
      According to the association, the sales of homes have slowed down and at the beginning of the year, the length of time it took for homes to sell was nearly 10 days longer than previously.
      Currrently the average period to sell is 66 days. In big cities it is below the average, while in small cities the wait is longer.
      ”One could think that the international uncertainty in the housing market and the soaring interest rates have curiously not yet had any effect on the demand for homes in Finland. However, the citizens’ growing concern about the future is already gathering clouds on the sky”, notes Malila.
     
A nationwide report including statistics on all home sales will be released on Friday of next week when Statistics Finland publishes the figures based on the information given by the tax authorities.
      ”No dramatic changes have taken place, and it is obvious that the information given by the Finnish Real Estate Dealers Association is showing the correct trend”, says Director Ilkka Lehtinen from Statistics Finland.
     
The total value of home sales amounted to EUR 17.1 billion last year. Even though the sales volumes dropped slightly from the record year of 2005, the value of transactions increased as a consequence of soaring prices.


Links:
  Finnish Association of Real Estate Agents SKVL
  Statistics Finland

Helsingin Sanomat