Monday, 12 November 2007

Sweden House price falling...Finland Next?

"The cost of apartments in Sweden fell during the third quarter while house prices remained unchanged, according to statistics released by state-owned mortgage lender SBAB."

"It is the first time since SBAB introduced its 'estate agency barometer' in 2005 that prices are reported to have dropped"

"SBAB said the dip in the market had been surprisingly sudden, with fewer people bidding on properties leading to prices that were lower than anticipated."

"Estate agents were predicting that the slump would continue into the fourth quarter, further driving down the cost of apartments and houses."

"'Estate agents are saying that the credit market crisis has had a certain negative effect on the housing market. But the main reason for the drop we are currently seeing is probably that people are feeling the pinch from higher interest rates,' said Tomas Pousette, SBAB's chief economist, in a statement"

Would Finnish house price fall? Time will tell. One thing is sure, the pshychology has changed. More news are coming day after day showing a slow down in the construction industry and housing price.

Most of all, Housing affordability has never been so low since 1990.

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