Winter is coming as house sales cool down

House sales start to fall, but prices are on the rise according to the findings of a new study out today.

File picture, aerial panorama of Helsinki / Credit: iStock

Finland’s home sales market has cooled off in the last year, and it could be a chilly winter ahead if you’re in the real estate market.

New figures released today from real estate agency Huoneistokeskus show that sales of existing housing stock – meaning every type of home except new builds – have fallen on average 8% in the past year.

Some of the biggest house sale drops were in Helsinki down 13%; Vantaa  down 21%; Kouvola  down 12%; and Lappeenranta  down 10%.

“The reason for the decrease in sells is due a lack of volume of existing housing stock in the market” explains Huonestokeskus Sales Director Panu Paanila.

File picture inside an apartment / Credit: Huoneistokeskus

While house sales in general are decreasing across the country, Tampere is one city bucking the trend. Sales there were up 2%, due to an upswing in new builds and increasing urbanisation. Young people especially like to move to Tampere.

“In Tampere the housing trade, and especially the apartment building trade, continues to be be brisk and also the number of residents in closest municipalities continues to be progressive” says Ari-Matti Purhonen, Huonestokeskus CEO.

The prices of two-room apartments have also risen in city of Tampere by 3 %, a trend that can be seen in other cities as well, with house prices up an average of 7% compared to August 2017.

New construction has been vibrant in Tampere since 2012, and this has even raised the average prices of old housing too, the report finds.

“People today are rather looking for easy urban living as for example younger families are no longer moving from a small apartment house to a family house or a row house as before, but instead are increasingly being replaced by a larger apartment building where new construction is taking place” Purhonen tells News Now Finland.

Statistics show that where new homes are being built in Tampere, the prices have risen most. For example houses in Tampere’s Kaleva neighbourhood have jumped 27% in the past year.