House prices in Finland

Measures the change in house prices in Finland through an index of transacted second-hand dwellings (flats and houses). Published by Statistics Finland (Tilastokeskus), it is a key gauge of the Finnish housing market and of household wealth.

Statistics Finland builds the index against a base year from actual transaction prices, controlling for dwelling characteristics (a hedonic method) to isolate the price change. It is released quarterly and monthly, with year-on-year and period-on-period changes.

House prices affect construction and its supplier industries, household wealth and spending (the wealth effect) and financial stability through mortgage lending. In Finland, where borrowing is heavily at variable rates, they are sensitive to ECB policy.

The index is published with a lag and revised as more transactions are added. Average prices can be skewed by the mix of sales (type and location), and Finland's thin, seasonal market adds volatility.