The members of the Finnish Association of Real Estate Agents (Suomen kiinteistönvälittäjien liitto, SKVL) give feedback to banks on poor and slow service. In the Association membership survey the brokers say, that the much-talked-about e-commerce has not brought any relief to bank congestion, but has further slowed trading.
- The banks are the real brake for housing trade now. I have never received as much critical feedback from brokers regarding the operations of banks as this autumn, says SKVL's CEO Jussi Mannerberg in a press release.
Brokers reproaches the banks, that they have cut own costs, branches, staff and are not even able to make loan decisions within a reasonable period of time. According to the survey, loan decisions may have to wait up to a month and a half. According to intermediaries, banks have become overly cautious in their financing and make assessments, without being competent enough to interpret them.
- The activities of the banks in the current market situation look strange, because, now more than ever, a functioning financial market is needed in order to return to normal life as soon as possible, Mannerberg wonders.
According to the association, there are known cases where the agreed deals have been taken forward with the bank's promise to grant a loan. At the time of the transaction, the bank has applied the emergency brake and denied financing, frustrating even long home exchange processes with several homes in the chain.
Demand for townhouses has increased in Finland. Own houses attract more
Based on its survey, Finnish Association of Real Estate Agents estimates that the coronavirus has changed the housing and real estate markets. The differences between supply and demand in different regions are large.
Three out of four respondents say, that the trade has returned to its former level or even exceeded the pre-Covid period. 85% of respondents say, that the impact of the "second wave" of coronavirus in autumn has been negligible or non-existent.
- There is still pent-up demand in the market after the spring, which has not been met due to the caution of sellers, Mannerberg describes.
The sales volumes of town houses in September have been on average about 2% above the normal level. Correspondingly, the sales volumes in apartment buildings have turned to a decrease of about 2% from a normal level.
According to Mannerberg, the shortage of good housing continues across the board. This is especially true of town houses in good condition in the Metropolitan area. Houses built in the 21st century are the most asked. Non-renovated town houses from the 60's and 70's are harder to sell.
As autumn progresses, respondents anticipate some slowdown in trading.
- Coronavirus has changed the housing preferences of Finnish people quickly. Own yard is now important and additional squares are desired for the real need, Mannerberg describes.
Viewed by region, the effects of the Covid19 are most visible in northern Finland, for example. Lapland is concerned about the decline in employment brought about by the quiet tourist season and its impact on the local housing market.
The huge demand for summer cottages, which started in the spring 2020, will continue to be strong throughout the rest of the year, brokers predict.
The full information and the source text can be found at IS website.
Published 29.09.2020, FINREPO