The Finnish housing market continued to see a decline in prices of old apartments in February compared to the same period last year, according to Statistics Finland. Prices fell by 5.5 percent in

the country's six largest cities and by around 4.4 percent in other regions. The capital region experienced the steepest fall, with old apartment prices dropping by 6.1 percent year-on-year, but they increased by around 1.2 percent compared to the previous month. Prices fell less in Turku and Oulu compared to other major cities.

The overall apartment building prices in Finland dropped by 5.8 percent, and terraced house prices dropped by 3.7 percent compared to last year. Furthermore, sales volumes of old apartments and row houses declined by 32 percent in February, equivalent to approximately 2,000 fewer sales than normal. The downturn also affects the state's tax revenue, with hundreds of millions of euros in property transfer taxes not being charged.

Economist Juho Keskinen from mortgage lender Hypo said that the volume slump reflects consumers' weak confidence in the Finnish economy. People's plans to purchase homes are at their lowest level in seven years, and the overall outlook for the Finnish economy remains uncertain. However, consumer confidence levels are creeping back up, pointing to February's housing price increase compared to January. Handelsbanken's chief economist Timo Hirvonen also saw signs of improvement, noting that apartment prices rose by 1.2 percent compared to January.

Keskinen suggested that in uncertain times, buyers should take a closer look at the apartment's location, the housing association's financial situation, and ownership base. He also said that belief in the future would return as inflation and interest rates settle down. However, Veera Holappa, an economist at Pellervo Economic Research Institute PTT, suggested it was too soon to declare an ease in housing price declines after only one month. "The bottom may have been reached, but whether we can get up from there cannot be said yet," Holappa said in a Twitter conversation thread.

The declining trend in the Finnish housing market began in late 2018, and it is expected to continue for some time. According to a survey conducted by the Finnish Real Estate Federation, the declining trend is likely to continue for at least two more years. The Covid-19 pandemic has also played a role in the decline, with many people opting to rent instead of buying. As a result, rental prices have increased.

In conclusion, the Finnish housing market continued to see a decline in prices of old apartments in February compared to the same period last year. Sales volumes of old apartments and row houses also declined, reflecting consumers' weak confidence in the Finnish economy. However, consumer confidence levels are creeping back up, pointing to February's housing price increase compared to January. Buyers should take a closer look at the apartment's location, the housing association's financial situation, and ownership base during uncertain times.