Wednesday, 2 September 2009


The real estate market has been hit hard by the recession. Sales fell in the first half of the year by nearly a quarter compared to the same time last year.
The amount of money spent on purchases dropped by about one third.

Buyers were also interested in much cheaper properties. The National Land Survey of Finland says that sales of small houses and lots fell dramatically.

During the first six months of the year, 27,500 real estate deals were closed, a decline of 24 percent from the same period of last year. The deals totalled 2.7 billion euros, down by 34 percent from the first half of 2008.

Sales of lots for small detached houses slumped by 35 percent, while house sales dipped by 23 percent.

The number of vacation homes sold also shrank by one quarter. In particular, Russians' interest in buying holiday properties in Finland has slumped. Last year Russians purchased 780 properties, but this year's figure is expected to be about one quarter of that.

Sales of farmland dropped by one third and of forest lands by one quarter. However prices paid for fields rose since last year.


Put as-is as extracted/pumped/copied/diluted/borrowed/shoplifting from YLE.

Nevertheless it fit my analysis of the situation in this very thin and volatile market...a reminder that the housing market follow cyclicale patterns. Pattern you said? how about a 20 years pattern: 1970 (market lost 40% from peak to bottom), 1990 (market lost 40-60% peak to bottom) 2010 (market lost X % from peak to bottom)...

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