OP forecasts fall of single house sales

The number of sold detached houses has fallen back to the same level as four years ago, according to OP.

Lasse Palovaara, Director of OP Koti estimated that the number of sales for detached houses will not increase in the coming winter despite there being demand for energy-efficient houses that are in good condition, said OP in a press release on Friday.

Sales for detached houses were high during the pandemic years, as many home buyers sought more living space.

Detached house sales increased in comparison to previous years, and detached house prices increased rapidly. The coming winter looks quite different when it comes to detached house sales.

“Sales have decreased significantly from the previous years. The increase in housing costs and general living expenses is a matter of concern among buyers. Caution among buyers will likely be reflected in the number of detached house sales”, said Palovaara.

Detached house sales were clearly the most frequent during summer and early autumn.

According to the statistics of the Central Federation of Finnish Real Estate Agencies, a record number of 1,800 detached house sales were made in June last year, and almost 1,700 sales in September.

The number of detached house sales was 1,300 in September, which corresponds approximately with the level for 2018.

“Energy-efficient detached houses in good condition are still being sold, but in this market situation there is less demand for houses that require renovation. In this regard, detached house sales have been split in two as a result of rising heating costs”, said Palovaara.

Detached house sales are typically less frequent at the turn of the year and in the middle of winter than during other times of the year. A quiet market can also be an opportunity for buyers and home exchangers.

“Competition has decreased in comparison to previous years, even for high-value properties. Even if you had to sell a house at a lower price than during the pandemic years, the price for the following home may also have decreased, which means that you might not need as much money as before”, Palovaara added.

He is monitoring the coming winter with interest, as detached house sales are still affected by increased heating expenses, inflation, and interest rates.

“The number of sales may drop significantly in the winter months. So the coming winter will certainly show how the detached house market will develop. If the crises recede, the number of sales might increase significantly in summer.

The lull in sales is not yet strongly reflected in detached house prices. Sales prices have returned to 2020 levels after the highs of the pandemic years.

“Granted, if the number of sales is low for a long period of time, it will eventually be reflected in the prices as well”, Palovaara said.