Finnish Housing Prices to Pick Up Next Year, Nordea Forecasts

Finnish house prices will probably bounce back to meager growth next year after bottoming out this quarter as an easing outlook for borrowing costs will boost demand for homes in the Nordic country, Nordea Bank Abp said.

After an “exceptionally quick” price drop that followed the rise in interest rates, Euribor rates — the most commonly used benchmark in Finnish mortgages — are probably around their peak now, Nordea economist Juho Kostiainen wrote in a note on Wednesday. He sees the first year-on-year increase in house prices in the second quarter of next year, three quarters after borrowing costs have peaked.