OP Financial Group's economists predict that home prices will rise by two percent this year, and the price increase will slightly accelerate next year, said OP in a press release on Wednesday.
Growing uncertainty is affecting the pace of growth this year, but the gradual recovery of the housing market continues.
In terms of volume, the housing market has been picking up for a year now.
However, prices have not yet been on the increase compared to a year ago.
According to the forecast, home prices will rise by an average of 2 percent this year. The forecast has been lowered by one percentage point from April's forecast due to weaker economic development.
Next year, the price increase is expected to continue at a rate of three percent.
“Home sales are clearly more active than, for example, a year ago at this time. Nevertheless, there is still room for growth in home sale volumes, and we expect that the volumes will continue to rise for some time,” said Joona Widgrén, Senior Economist of OP Financial Group.
The recovery is not yet clearly visible in home prices. During the first quarter, the prices of owner apartments fell on average by 1.3 percent across the country, compared to a year ago.
The decline was fastest in studio apartments, with prices falling by 2.5 percent.
“Home prices have been quite stagnant for a year now. We slightly lowered our forecast for this year's price development due to increased uncertainty and weak labor market development. We expect prices to pick up this year. Risks to price development have nevertheless increased recently,” Widgrén added.
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- OP
Source: www.dailyfinland.fi
