The rise in house prices will slow down this year, Nordea and OP forecast

, for its part, estimates that unit prices may even fall between 2022 and 2023.

Housing prices have continued to rise in the first half of this year, albeit at a slower pace than last year. However, Nordea emphasized that the value of households’ own mortgages is higher than in the years before the coronary virus pandemic, despite the decline observed this year.

Another noteworthy aspect of recent developments is that the attractiveness of the Metropolitan Area appears to have weakened, with the largest increases in , and , for example.

“In the Helsinki metropolitan area, house prices are depressed by weakened demand for single-family homes, a significant increase in supply caused by construction and a decrease in internal migration,” listed Juho KostiainenNordean economists.

“The fastest growth is behind us. The prices of studios have even started to fall slightly, and the rise in the prices of detached houses has leveled off. ”

OP Financial Group estimates that the coronavirus pandemic seems to have reversed the downward trend in house prices in most provinces, at least temporarily.

“The rise in house prices has been more evenly distributed since the beginning of the year than before. In April, house prices rose on average faster outside the big cities. In addition, house prices in the Helsinki Metropolitan Area have risen more slowly in recent months than elsewhere in the country. However, there are no significant signs of a significant change in the megatrend of urbanization. taken into account Joona WidgrénOP economists.

Nordea warned that interest rates have started to decline and seem to continue to do so in the coming years. ’s most common for mortgages, 12, rose to almost 0.96 per cent on Tuesday, an increase of almost 1.5 percentage points since the beginning of the year.

According to the market forecast, the will reach 2% within a year.

OP Financial Group has calculated that a one-point rise in interest rates could slow down the rise in house prices by two points.

Kostiainen reminded that the rise in interest rates will help keep house prices and household consumption under control by limiting the amount of money spent on housing by borrowers and other forms of consumption. The price of housing has also risen due to high energy prices and the general uncertainty caused by the Russian invasion of .

Aleksi Teivainen – HT

Source: The Nordic Page

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