OP Financial Group and Nordea Bank forecast that the rise in house prices in Finland will slow down this year and next after the exceptional growth period of 2021.
According to OP Bank’s recent forecast, changes in house prices will be between -0.5 and +0.5 percentage points next year due to a slowdown in interest rates, inflation and economic growth.
Although house prices have risen this year, the pace of growth has slowed.
According to Nordea, the metropolitan area has experienced the biggest slowdown due to a lack of demand for studio housing, an oversupply caused by increased housing construction in the area and the exodus of people from urban centers.
The bank noted that interest rates on mortgages were already on the rise and predicted the trend to continue over the next couple of years.
The reference rate for most mortgages is based on the 12-month Euribor rate, which the market forecasts to rise by about two percentage points next year.
Source: The Nordic Page