Housing trade|According to Hypo’s chief economist, house prices will generally rise only next year. “Now we are looking for a market level”, says Juho Keskinen.
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Apartment prices have not yet turned to a significant increase due to the abundant supply, says Hypo’s chief economist Juho Keskinen.
According to Keskinen, the low purchase offers are not ‘outrageous’, but rather reflect the real price level of the market.
Apartment prices are expected to rise next year, but in small apartments the change may take longer.
Housing market according to the closely following economist, there are no outrageous home purchase offers.
The big difference in the perceptions of buyers and sellers about the price level only shows that there is still a lot of supply compared to the desire to buy, even though the trading volumes have picked up.
“The sales times for apartments are still exceptionally long, which tells us exactly the magnitude of the difference between the asking and offer prices”, Hypo’s chief economist Juho Keskinen says.
Sp codeine managing director Jukka Rantanen said in HS on Thursday, that apartment buyers are now leaving offers for apartments that are too low, which do not even lead to negotiations.
According to him, the brokers have considered the offers even “outrageous”.
According to Keskinen, the truth is that the oversupply in the housing market has not yet melted away, even though transaction volumes and demand have picked up.
Although the large supply of new apartments has started to melt, many old apartments have come up for sale. Many owners of old apartments have held back the sale and waited for the market to pick up.
“I offer abundance means that buyers are alert to the market’s true price level. Sellers, on the other hand, adjust their catch prices with a delay,” says Keskinen.
Both sides now clearly have a taste for experimentation and the market level is sought. Sellers who have heard about the pick-up in the market try at least first with a higher price. Buyers, on the other hand, try which offer would go through.
It is the normal functioning of the market. From the point of view of real estate agents, it is of course unfortunate, because the transaction can take longer.
“The deal will take place at the price that the seller and the buyer can agree on. I would estimate that the buyers still have a pretty favorable situation, because there is so much supply. The prices have not gone up significantly,” says Keskinen.
In the end, the housing market is about individual, very different apartments and the very different needs of buyers, so you shouldn’t stare too much at the average prices in the area either.
In general level, according to Keskinen, it seems that the prices of apartments will be slightly lower this year compared to last year.
“Although there has been an increase in, for example, Tampere, Oulu and Espoo, the overall development has been flat. As for the whole country and the capital region, we will remain a bit below freezing,” says Keskinen.
However, the lack of construction and the recovery of shops means that the shops are starting to eat up the number of apartments available. Next year, prices should therefore start to recover clearly. The price reversal is also supported by the strong population growth in the Helsinki region.
“But here there are differences depending on the type of apartment. There are still a lot of small apartments available, and it may take a longer time for them to turn around. The demand is for slightly larger apartments.”