Housing trade | Is Alho of the housing market over? “In the spring we see really lively months,” says OP

Housing trade was busy in December, and both the real estate agency chain Kiinteistömaailma and OP-koti report that there were significantly more deals than a year earlier.

According to OP-kodi, 811 housing and real estate transactions were made through it in December, which is 46 percent more than in December 2022. More than 50 percent more deals were made through Kiinteistömaailma than a year earlier, a total of 781.

99 percent of the deals made through Kiinteistömaailma were used apartments and real estate. Only 10 new items were sold. 712 used apartments were sold in OP-Kodi, and the growth compared to the previous year was 53 percent.

In December 2022, there were exceptionally few housing transactions. According to Statistics Finland, in December 2022, 3,300 housing transactions were made on the basis of transfer tax data. In December 2021, 5,904 deals were made and 6,465 a year earlier.

Statistics Finland's data for the year 2023 are preliminary data for the time being, but at the level of Finland as a whole, a 50 percent increase in trade volume would mean that December did not reach even close to the trade volumes of December 2022.

Real estate world managing director Mika Laurikainen points out in the announcement that typically December quiets down housing sales. This time, however, almost as many deals were made as in November.

“Especially in the capital region, many companies belonging to the Kiinteistömaailma chain report a busy December, and individual record months were also made in other parts of the country, which is not quite usual at this stage of the year,” says Laurikainen.

For OP-Kod, December was the second positive month after November after a long period of decline.

“I dare to say that the turning point in housing sales has now taken place. The rest of the winter months may still be quiet in terms of transaction volumes, but in the spring we will see really lively housing transaction months”, OP-Kodi manager Lasse Fire danger evaluates in the announcement.

The end of the year housing sales were particularly boosted by first-time home buyers, for whom the transfer tax exemption was removed at the turn of the year. In the deals brokered by Kiinteistömaailma in December, the share of first-time home buyers was almost half.

“In many places, the service for first-time home buyers was running against time in December, so that the deals could be completed before the turn of the year, i.e. without the transfer tax,” says Laurikainen.

Also in OP-Kodi, first-time home buyers had the greatest impact on transaction volumes.

“But it's also about something else, because our business has picked up the most for larger apartments,” Palovaara says.

After a busy end of the year, January is expected to be more even in OP-Kodi. However, Palovaara estimates that deals made at the end of the year can stimulate the housing market well into the spring.

“The housing market has been stalled by purchase offers, where the condition has been the sale of the buyer's previous apartment. The first-time home buyers who made house sales at the end of the year have now released these chains that were stuck in the house sale, which will generate sales well into the spring,” says Palovaara.