Friday, 9 May 2008
Finnish House Price Falling - Asuntojen reaalihinnat laskivat
"Real prices of dwellings have now fallen for two successive quarters.
According to preliminary data, in the first quarter of 2008 real prices fell by 1.0 per cent from the previous quarter in the whole country.
Nominal prices went up by an average of 0.3 per cent in the whole country. Prices remained unchanged in Greater Helsinki but rose by an average of 0.5 per cent in the rest of Finland."
So price have reached their maturity, now the question is how well the economy and unemployement will hold next year. If there is deterioration, then house can fall further.
So inflation is not helping anybody, since if the price growth is lower than inflation then you certainly have a property that is deflating slowly.
I think it should come at a surprise to anybody, especially the ones that have followed this blog, that prices have reached their peak level.
2009-2010 will be a period of asset deflation. By how much? it all depends on the global economy, inflation and government policies.
See link from some tentative prediction done few months ago : Technical Housing Analysis