Wednesday 13 May 2009

Statistics Finland "Price Bubble" Revelation


Finally they published the data with a lot of new changes - what do you expect when a market is declining, you got to review the way data is published, a bit like the accounting rules for the Banking sector- yet they provide interesting data, that I will have to go through, and I will come back later on with the full analysis.

In the meantime, I wanted to highlight something that is quite astonishing as it seems that Statistics Finland knew that a bubble started to develop in 2006. Although I think they are way optimistic in their date, mainly based on futur wage development...


" During this decade buying power to get a dwelling by earned income has declined rapidly. ”The price bubble” in house market was created 2006, when, house price curve has risen above wage curve(1983=100).

House prices went down during 2008 and ”the price bubble” of house market is melted down. Decline of house prices have overhauled house market.
"

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