The prices crept up by 0.1 per cent from the previous year in both the capital region and regions outside the six largest cities.

Compared with the previous month, the prices decreased moderately in Vantaa, but increased in Espoo, Helsinki, Oulu, Tampere and Turku. Nationwide, the month-on-month increase came in at 0.9 per cent.

October also bodes well for the housing market in that the number of real estate sales brokered by agencies surged by 27 per cent year-on-year, according to the preliminary data. Juho Keskinen, the chief economist at the Mortgage Society of Finland (Hypo), described the change in the market as “striking”.

“Although there is no shortage of new-built dwellings, buyers who have previously had the courage to buy new-built dwellings have become more safety-oriented, which is manifested as an increase in the sales of old dwellings in housing companies,” he commented.

“Despite the rejuvenation, the sales of old dwellings were still running about 14 per cent slower than in the corresponding August—October period in 2015–2019.”

Juhana Brotherus, the chief economist at Suomen Yrittäjät, estimated in his analysis that although the market is heading in the right direction, it continues to face challenges.

Brotherus also called attention to the fact that flats and terraced houses were in higher demand than detached homes, adding that he expects the prices of detached homes to continue on a downward trajectory.

“One factor explaining the difference is found in the secret return of real estate investors to the market in recent months. At the same time, it is possible to see a buying hangover dating back to the coronavirus pandemic as a factor underlying the sluggishness of detached home sales,” he wrote.

Aleksi Teivainen – HT