OP-Pohjola's Asuntoaamu event: July-September the Best Ever Quarter in Home Sales at OP-Pohjola
(Thomson Reuters ONE) -
Press release 8 November 2011
OP-Pohjola's Asuntoaamu event:
July-September the Best Ever Quarter in Home Sales at OP-Pohjola
In July-September, the number of homes sold and bought through OP-
Kiinteistökeskus real estate agents reached an all-time high. October
transactions were also almost at the same level as a year ago.
- Sales have somewhat slowed down from the lively housing market experienced in
the early autumn. This is reflected, for example, in slightly prolonged selling
periods and a marked slowdown in the sales of the most expensive homes, says
Kenneth Sandberg, Vice President, Estate Agent Services.
The third quarter was excellent for OP-Pohjola Group in terms of home loans -
the best in the 2000s. Demand for home loans remained brisk in October too and
the month saw more loan negotiations than a year ago.
- There is uncertainty in financial markets, but there are no signs of our
customers being unable to repay their loans, says Mikko Hyttinen, Senior Vice
President.
Although global markets are being plagued by the debt crisis, Reijo Heiskanen,
OP-Pohjola's Chief Economist, says that there are also positive aspects from the
consumers' perspective.
- The optimism arisen by the euro-area summit faded fast, and the uncertainty
caused by the political instability in Greece will be reflected in the economic
climate next winter. Economic growth in Finland too will be very slow and we may
see a temporary period of negative growth. However, the news is not that gloomy
from the consumers' point of view. Real wages will rise next year and interest
rates will remain low.
According to Heiskanen, the 12- month Euribor will next year move within the
same range as this year, or from 1.5% to 2%.
Upward pressure on margins
Banking regulation and the resulting, stricter capital and liquidity
requirements and higher long-term funding costs will put upward pressure on home
loan margins.
- In the first of May, the margin will be markedly above one per cent but the
average interest rate for new home loans should not rise above 3.5% next year,
Mikko Hyttinen predicts.
In the future, the cost of a home loan will rise somewhat because the home
mortgage interest deduction terms and conditions will become tighter. However,
home borrowers can be relieved to know that interest rates will remain low.
Steady popularity of the ASP scheme
Since the legislative amendments issued in 2009, saving for a home under the ASP
scheme (housing saving and support system) has increased its popularity among
young people. At OP-Pohjola Group, the number of ASP home savers has more than
tripled during the over past three years and it seems that the number of ASP
accounts opened monthly has settled at the level that is six times higher than
that before the amendments.
A 3,000-euro home-saving bonus from the government has served as a temporary
incentive within the ASP scheme and home savers are entitled to this bonus if
they buy a home by the end of 2011.
OP-Kiinteistökeskus real estate agents reveal that home savers under this ASP
scheme have made use of this bonus this autumn. The number of ASP home buyers
this year has been more than double the number a year ago and it has grown
towards the end of the year.
- I am happy to see that young people make plans for their personal finances and
housing on a long-term basis, says Mr Hyttinen.
Although new ASP savers are not entitled to this additional bonus, the ASP
scheme is good and appealing, points out Hyttinen.
- Tax-exempt interest on deposits and supplementary interest as well as the
opportunity for state guarantee with better terms and for a government interest
subsidy are benefits which home buyers should tap.
For more information, please contact:
Mikko Hyttinen, Senior Vice President, tel. +358 (0)10 252 2211
Kenneth Sandberg, Vice President, Estate Agent Services, tel. +358 (0)10
252 4635
Reijo Heiskanen, Chief Economist, tel. +358 (0)10 252 8354
OP-Pohjola Group is Finland's leading financial services group providing a
unique range of banking, investment and insurance services. The Group has the
mission of promoting the sustainable prosperity, well-being and security of its
owner-members, customers and operating regions through its local presence. Its
objective is to offer the best and most versatile package of loyal customer
benefits on the market. OP-Pohjola Group consists of some 200 member cooperative
banks and the Group's central institution, OP-Pohjola Group Central Cooperative,
with its subsidiaries and closely-related companies, the largest of which is the
listed company Pohjola Bank plc. With a staff of more than 12,000, OP-Pohjola
Group posted consolidated earnings of 575 million euros before tax in 2010 and
had total assets of 84 billion euros on 31 December 2010. The group has over
four million customers.
This announcement is distributed by Thomson Reuters on behalf of
Thomson Reuters clients. The owner of this announcement warrants that:
(i) the releases contained herein are protected by copyright and
other applicable laws; and
(ii) they are solely responsible for the content, accuracy and
originality of the information contained therein.
Source: Pohjola Pankki Oyj via Thomson Reuters ONE
[HUG#1561508]
Unternehmensinformation / Kurzprofil:
Datum: 08.11.2011 - 08:31 Uhr
Sprache: Deutsch
News-ID 84945
Anzahl Zeichen: 6020
contact information:
Town:
POHJOLA
Kategorie:
Business News
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