According to Hypo, a Finnish housing lender, average housing prices have seen a continuous decline for 3.5 years, which is as long as the drop experienced during the worst phases of the 1990s economic depression. Juho Keskinen, the chief economist at Hypo, warns that this trend could become historically prolonged. However, he emphasizes that the situation now is less dire than in the 90s, where factors such as higher interest rates and greater unemployment exacerbated the economic hardships.

The prediction is that any potential rebound in housing prices will likely be pushed to the latter part of the year, with Hypo forecasting a slight decline in prices overall for 2023. The early months of the year have already shown disappointing results for housing sales, although there has been a gradual narrowing of the price expectations between buyers and sellers. This shift is reflected in the ongoing increase in transactional activity in the market, signaling a possible adjustment in buyer-seller dynamics.

While there is renewed activity as sellers adjust their price demands closer to those of buyers, Hypo notes that prices are still on a downward trajectory. The expectations for housing prices in both the capital region and the rest of the country indicate a challenging market environment that many stakeholders will need to navigate throughout the year.