In November, apartment prices in the capital region fell by 5.4 percent compared to last year. Of the big cities, prices fell the most in Helsinki and Tampere.
Finland the fall in house prices is accelerating. According to Statistics Finland’s preliminary data, the prices of old share housing fell in November across the country by 3.4 percent from last year and by 1.2 percent from October.
The rate of decline accelerated compared to October, as in October prices decreased year-on-year by 1.9 percent from last year and by 0.6 percent from September.
Along with the drop in housing prices, housing sales also clearly declined in November. In November, 38 percent fewer sales of old apartments and townhouses were made through real estate agents than a year earlier.
“Of the big cities, the prices fell the most in Helsinki and Tampere, in Oulu the prices were at the same level compared to last year,” Statistics Finland writes on its website.
The decrease hits the capital region in particular, as housing prices in the capital region fell by 5.4 percent. In other large cities, the decline was 5 percent.
The drop in prices was visible in November in the sale of apartment buildings. Their prices fell by 5.3 percent throughout the country. The prices of townhouses rose by 1.3 percent compared to a year ago.
The reason for the decline in housing prices is, among other things, the increase in the cost of living caused by reference interest rates, the rise in energy prices and the general rise in price levels. For example, the most used reference interest rate, the 12-month euribor, already rose to over 3.3 percent on Wednesday. The reference rate in question has risen by more than 3.8 percentage points in a year.
The shorter reference interest rates, the three- and six-month Euribor, have also risen rapidly this year.
Statistics Finland according to preliminary data, the prices of apartments in the whole country are now almost at the level of 2020.
Housing prices rose rapidly in 2020 and 2021 as a result of the corona pandemic. One of the reasons for the rise in prices was people’s desire to look for even more spacious apartments.
As recently as June, apartment prices were more than 7 percent higher than in 2020. Now the price difference until 2020 is only 2.1 percent.
In Helsinki, the decline has been even faster, as in June apartments were on average 9.3 percent more expensive than in 2020. Now only 1.5 percent.
The news is updated.
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