Friday, April 16

Property in Norway: prices rise across the country but fall in Oslo

The growth is just over one percent higher than what is considered average growth according to new figures from real estate organization Eiendom Norge.

A house sold on the market in March took 43 days to sell, more than a week less than the previous month when it took an average of 51 days.

Figures show that fewer people currently own a home due to rising house prices. According to Norway statistics the share of tenants has increased by about one percent.

However, this growth in house prices is not expected to last much longer.

“With the increase in supply that we have seen in March, inflation will probably slow down a bit towards the summer,” Eiendom Norge CEO Hennig Lauridsen said at a Press conference.

Nejra Macic, chief economist at the Forecast Center, an independent market analysis firm, told the state broadcaster NRK that she believes that March may be the last month that Norway’s house prices rise.

“If it is not March (the last month with growth), we do not think it will be long. We have covered most of the growth this year, ”he said.

Kari Due Andersen, Handelsbanken’s chief economist, agrees with this and believes that due to floating mortgage rates, house price growth will soon slow down.

“It’s a rule of thumb that says that the mortgage rate that people have in the bank is on average 2 percentage points higher than interest rates. That’s because banks adjust the key policy rate to costs. When the key policy rate increases, so does the mortgage rate. Then a mortgage becomes more expensive, and many have floating interest rates. It is a factor that will contribute to the slowdown in the growth of house prices and that households will look forward to, ”he told NRK.

Despite the fall in March, house prices in Oslo are still rising 15.6 percent compared to last year. Grethe W. Meier, CEO of Privatmegleren, told the online news site The online newspaper that the gout was not worrisome.

“I think it is important to see February and March together. Also, in March, the proportion of small apartments fell. These apartments are probably the ones that have raised the price and are the most volatile. When that stock has fallen, it helps lower prices, ”he said.

READ MORE: Property in Norway – what to expect if you are buying a house in Oslo

Those looking to buy a home received a warning from Norway’s central bank, Norges Bank, that interest rates could rise this fall rather than next spring.

“It has helped that people have understood that mortgage rates have bottomed out and that there is only one way that interest rates will go in the future. When people are lowered that interest rates will rise, expectations for house prices will also weaken. Then there will be a growing number of people who will sell before wanting to buy. Then the pressure and the bidding wars will disappear. But it will take time and it won’t change overnight, ”Macic said.

House prices in March also rose in other larger cities in Norway

  • In Stavanger, the increase was 0.7 percent. Prices have risen 7.9 percent in the last twelve months
  • In Bergen, prices rose 3.0 percent and have risen 12.7 percent in the last 12 months.
  • In Trondheim, prices are up 2.2 percent and are up 10.6 percent in the last 12 months.

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