The drop in interest rates and prices, pent-up demand and an increase in the consideration period can all contribute to accelerating the housing trade, which is often lively in the spring anyway, Danske Bank anticipates.
Banking company According to Danske Bank, this spring is a good time to buy an apartment.
In the press release, Danske lists three reasons for its claim.
According to Danske Bank's forecast, market interest rates will fall clearly over the next two years.
The bank anticipates that by the end of this year, the annual euribor would be around three percent, and by the end of 2025, according to current forecasts, the annual euribor would already be close to two percent.
In the first half of January, the euribor for the year has moved at a level of 3.5–3.6 percent.
“If the forecast comes true, many debtors would receive a significant relief in their monthly installments,” says Danske Bank's head of personal customer loans Sari Takala in the bulletin.
During the corona years the housing market was brisk, and the desired properties had to be offered quickly – sometimes even without seeing the apartment, Danske Bank reminds.
The busiest trade was in March 2021, when, according to the transfer tax data, almost 8,000 trades were made.
Now, in the bank's opinion, both first-time home buyers and those changing apartments benefit from the cooling-off period.
“Special attention should be paid to the condition and repair history of the object to be purchased,” advises Takala.
Danish According to the Bank's housing market review, housing sales are usually more lively in the spring. The now pent-up demand can start moving at that time.
Although the exemption from the transfer tax for first-time home buyers was removed at the beginning of the year, the two percent transfer tax on housing shares dropped to 1.5 percent, Danske Bank reminds.
In real estate transactions, the transfer tax, on the other hand, fell from four percent to three percent.
Danish Bank predicted in December in the housing market reviewthat house prices will rise by 2.0 percent in Finland this year.
The previous forecast was 2.5 percent.
Danske Bank aims to gain market share among first-time home buyers by not charging a home loan delivery fee or arrangement fee when the loan application is made by the end of March, and the loan is withdrawn by the end of May.
Danske is Finland's third largest bank in terms of home loans granted to households. Its market share of granted loans is approximately 9 percent.
Danske's view reflects the purchase intention indicator published by Suomen Kiinteistönvälittätien (SKVL) on Wednesday.
According to real estate agents' forecast, housing sales will increase at the beginning of this year. SKVL's forecast shows a “continuous increase” in demand for family apartments in particular.
SKVL also estimates that the acceleration in housing sales is mainly due to the drop in Euribor interest rates.
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