Finnish home sales fall 10% in the first half of 2022

Housing market The Finnish Mortgage Association (Hypo) predicts that Finnish mortgages will slow by about 10% in the first half of this year.

Thursday hypo Said Home sales are expected to decline as home prices are expected to rise slightly (1.5% in 2022 and 0.5% in 2023), as well as the uncertainties caused by the war in Ukraine. ..

According to Hypo, real home prices will fall significantly as inflation and earnings rise in clips above home prices.

Prices for single-room apartments can fall further, but the recent increase in the construction of small apartments is reflected in the prices of such homes, even in large cities and densely populated areas. Prices for large apartments are expected to rise in contrast in Helsinki, Tampere, Turku and its surroundings.

Another factor that negatively impacts housing market activity is the large number of homes that need to be renovated.

Hypo predicted that many municipal owners would refrain from repairing leaking roofs and cracked façade because the cost of remodeling is higher than the amount added to the value of the home. For example, in Savonlinna, one-sixth of homes that need renovation will not be repaired.

Homeowners may also abandon refurbishment due to a shortage of residents.

According to Hypo, in Helsinki, Tampere and Turku, almost every home that needs to be renovated will be renovated.

Aleksi Teivainen – HT Finnish home sales fall 10% in the first half of 2022

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