Tuesday, 4 March 2008
HYPO: "Properties Beyond Reach Of Even Top Earners"
The Mortgage Society of Finland (Hypo) said in a statement Tuesday that the number of unsold houses and flats in the country had risen to 1,500, adding said properties were beyond reach of even top earners.
1,500? They must have forgotten another zero or two : I would say most probably around 15,000 to 150,000 of unsold dwellings for the whole country and it's growing fast...
"Hypo blasted builders for neglecting the needs of a broad range of customers and urged the companies to build more affordable housing."
"It is of course nice to build those expensive and lavishly equipped dwellings," it added.
Right, So in order to bring affordability, the solution is to build low standard house...and avoid doing the right structural reforms?? (land planning and monopoly break down) . Housing cost will come down in the years if not months ahead no doubt about it so it's not an issue. Hypo is again shouting facts and proposing nonsense solutions...
"Hypo said it was possible but not probable for Finnish house prices to start falling later this year."
They will fall no doubt about it, the question is by how much? it all depends how long the market is not allowed to go to its natural equilibrium. who are the actors to blame in this disequilibrium?
1- The government : Providing subsidies in a market that didn't need it. It just shifted tax payer money to the wrong resources. In particular the housing minister has been almost an inexistant actor... where is he? and most important what is he doing?
2- The Municipalities : In making land planning and availability a speculation game...