"In the Helsinki region, prices fell by 2.8% during the second quarter of this year. Elsewhere in the country, prices were up by 1.9% over the same period of 2007.
The halt to the upswing in prices came quickly. Last year prices of single-family dwellings shot up by 6.4%. In the capital area, the reversal was even more dramatic. Prices there rose by 12.7% last year.
Nationwide, the average price per square metre for a single-family dwelling during the second quarter of this year was 1348 euros and in the Helsinki region, 2394 euros. Compared to the first three months of the year, the prices of lots for new houses were down nationwide by 5.8%."
I understand why politicians, media, policy makers and banks have tried to reassure the market and citizens that no "bubble" or excess were to be seen, and argued that prices won't readjust. I hear again Erkki liikanen, Bank of Finland Governor, saying last year, that price will still grow by 3%. I didn't believe that...
In fact, what they are targetting is an orderly market correction, not a panic...They still want people to buy and support the market (but who will support the late buyers?). They still don't want the market to freeze, but why big construction builders have already cut the amount of housing to be build?