Monday, 21 April 2008

Nordea Economic Outlook

"The pace of activity in the housing market has also normalised and households have become more cautious."

"The number of unsold new homes has increased and construction companies have cut down their production."

"Residential investment will decrease markedly this year."

"In Finland the rise in prices has been more moderate than, say, in the other Nordic countries, but a calmer period of a few years seems natural after an uptrend lasting several years

Nordea starts to be pessimistic with regard to the economic outlook and housing market. Their pessimism should be analysed as a worrying fact.

Clearly, if the credit and confidence crisis continue, its impact are beyond any crisis seen in the past 30 years thus making the last recession as shallow one. After all, the last recession was the trigger for housing price acceleration as interest rates were mistakenly pushed too low.


Anonymous said...

I'm living Helsinki and I can tell you that they are building "thousands" of flats, same for offices while at the same time already build flat are not being sold.

They are not taking into account in their equation the affordability of first time buyers but instead rely on those households that sell they smaller flat to move to bigger one which is last years story....

I can't se how they can sustain those high price and for how long?

fred said...

"The UK economy is set for a "rapid, painful adjustment" over the next two years, according to an influential economic forecasting group."

It looks like this is recession is going to hit all countries in the next 2 years...

House Hunting Bear said...

Just found this site. I have been finding it hard to find out information about house prices here in Finland but have noticed a softening in advertised prices and have begun to form my own conclusions about land controls and Real estate agency bank cartels and so forth.

You have an interesting site here! Thanks!