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What has happened? The prices for old dwellings in Finland continued to decline in March. Statistics Finland on Wednesday released data indicating that the prices declined by 6.6 %year-on-year in the large cities and by 4.2 % in other parts of the country, translating to a nationwide decline of 5.8 %.
Cities. Vantaa and Tampere recorded the most noticeable drop in house prices: - 8.6% and 7.6%, respectively. Prices in Turku, by contrast, fell the least, down by only 2.4% from the previous year.
Quote. Anu Rämö, a senior statistician at Statistics Finland, pointed out that the price development aligns with that witnessed in January and February: “Prices fell in all regions, more in large cities than other parts of the country,” she summarized in a press release.
Sales. Finnish real estate agencies concluded 29% fewer sales in March 2023 than in March 2022, resulting in a 33% decrease in brokered transactions from January to March.
The sales of new dwellings by housing companies fell by 71% year on year between January and March. However, their prices decreased moderately compared to the previous year, by only 2.0%.
Perspectives. Juho Keskinen, an economist at the Mortgage Society of Finland (Hypo), described the mood in the real estate market as cautious and sales unusually sluggish.
In his opinion, the market mood will not improve until the interest rates straighten out toward the end of the year.
Source: Helsinki Times
Photo by Juho Luomala on Unsplash
