According to the Mortgage Society of Finland, the country’s housing market has hit a 20-year high, with positive developments continuing in the industry without the danger of a housing bubble.
With the country’s economy recovering, the home financing organization is positive that nothing can stop urbanization, especially with interest rates on loans also falling. In its latest market forecast, it states:
“Soon we might even be able to enjoy a 1970’s-like atmosphere, when inflation took care of housing debt.”
Juhana Brotherus, the organization’s chief economist, also said that the biggest driver of the boom in the housing market is the overall growth in the economy and the substantial increase in consumer confidence. He stated:
“All of the housing market metrics are showing green and construction is at full throttle. Building was started on more new housing blocks at the end of last year that at any time since the early 90s.”
The organization revealed that that there are no signs of a bubble in the country’s housing prices, even in Helsinki. In fact, it predicts that prices will continue to increase by around 4% to 6% in the growth centers, such as the capital, Kuopio, Tampere, and Turku.
Brotherus commented, “The largest price increases concern small flats, which are being snapped up before their first showing.”