The matter in summary: The cottage market in 2023 was characterized by fewer turnovers and lower prices. 7 out of 10 cabins were sold below assessment. Sellers are preparing for a longer selling time, with an average of 101 days to sell a cabin, up from 65 days in 2022. The Norwegian Cabin Association believes that high electricity prices, higher interest rates, low krone exchange rates and generally high living costs have led to people using their cabins less. However, the forecasting center expects an upswing in the cottage market in 2024, with an expected price increase of between 0 and 5 per cent. The summary is made by an AI service from OpenAi. The content is quality assured by news’s journalists before publication. Solfrid and Vegard Djuve have just put their cabin up for sale. They are preparing for the first screening. The couple from Skien have bought a new cabin in Vinje, Norway’s fourth largest cabin municipality. With three young people in the family, the proximity to alpine slopes became alluring. They bought the new cabin below the asking price. Now they are prepared that the sale may take time. – We bought the cabin and knew that there was not a hot cabin market. We sell with open eyes and optimism, says the couple. Vegard and Solfrid Djuve are selling a cottage in Vinje. The cabin has a view of the mountains in the background of the picture. Photo: Privat Don’t believe in a price war Even though the market is tired, the couple doesn’t see it as a bad thing. – We are prepared that there will be no upward price war. If it takes a very long time, we may have to swallow some camels. Last year, it took an average of 101 days to sell a cottage in Norway, compared to 65 days in 2022, figures from DNB Eiendom show. The Djuve couple have recently bought a cabin and are therefore selling their old cabin at Kvambekkheia in Vinje. Photo: Kjetil Kaasa / EFKT On a national basis, 7 out of 10 holiday homes will be sold below assessment in 2023, the statistics show. – We may have to go up and take some new photos when the snow disappears, laughs the couple Djuve. The cottage market 2023: In 2023, 9,170 holiday homes were sold. That is 17 percent fewer than the previous year. Normally around 11,000 holiday homes are sold a year. It was the domestic cabins in the mountain cabin segment that saw the biggest decrease, with 22 per cent compared to 2022. Mountain cabins (cabins 800+ m.a.s.l.) followed with a 16 per cent decrease and sea cabins with a 10 per cent decrease. The price per square meter for cabins was one per cent lower than in 2022. The price per square meter is also 26 per cent higher than in the normal year 2019. At the end of December 2023, there were 16 per cent more holiday homes for sale on Finn.no than at the end of 2022. At the same time, longer turnover times are reported and a significantly higher proportion of holiday homes that are sold below the asking price. Source: Prognosesenteret/Finn.no – Takes much longer to sell Romjula is high season for broker Jeanette Arnesen-Eriksrød in DNB Eiendom. Between Christmas and New Year, she held five screenings a day in Rauland in Vinje. It’s not always that someone shows up. In Vinje, it took an average of 111 days to sell a cabin in 2023. – It takes much longer to sell now. I see that it takes longer than before the corona. It probably has something to do with the fact that we have had a lot of uncertainty, she says. Jeanette Arnesen-Eriksrød, estate agent at DNB Eiendom. Photo: Private 20 per cent of the cabins are sold above the asking price, while 68 per cent go under, the broker states. In normal times, it is common for more than half of the summer cottages to go below the asking price, the Forecast Center informs. – Can you do a cottage coup now? – You can do the cabin bargain with developers who have cabins in “stock”. But there are very few private individuals who “must” sell, the broker feels. Cabins in Holtardalen in Rauland. According to broker Jeanette Arnesen-Eriksrød, cabins in the alpine segment are easier to sell than inland cabins. The price per square meter in the alpine segment has increased by 3.9 per cent, she says. Photo: Lorentz Berg / news During Christmas, over 4,700 holiday homes and cabins were for sale in Finn. – Fewer cabins are sold, and they remain on the market for longer, says Jørgen Hellestveit, manager and housing expert at Finn Eiendom. Believes that cabin life is dying out The Norwegian Cabin Association paints a rather bleak picture of the cabin market. – It is extremely bad. In any case, there has been no improvement in the last year. Quite the contrary, says chairman Trond Hagen. Trond G. Hagen, chairman of the Norwegian Cabin Association. Photo: Dag Kessel / news High electricity prices, higher interest rates, low krone exchange rates and generally high living costs have major consequences. People don’t use their cabins as much as before because of high electricity prices, Hagen believes. – Norwegian cabin life is about to die out because of this. It does not appear to be temporary, he says. The only salvation Hagen sees for the cabin market for 2024 is an even lower krone exchange rate and foreigners buying and using Norwegian cabins. – It’s quite a black market these days. You can say that it is a buyer’s market, but when the buyer is not particularly interested due to a lack of predictability in costs, I cannot see that there will be any change in the near future. Believe in growth in 2024 The Prognosesenteret, on the other hand, believes that there is light at the end of the tunnel. They believe that the prices of holiday homes will increase during the year. Towards the summer, electricity bills are lower, opportunities for interest rate cuts are present and the mentality in the market is somewhat more positive, says senior analyst Carl Christian Mathiesen. – Demand will gradually return, which means that more cabins will be sold and many selling cabin owners will have capital released to buy their new cabin, he says. Carl Christian Mathiesen, senior analyst at the Prognosesenteret. Photo: Johan B. Sættem The forecast center does not have any models that calculate the price of holiday homes, but should Mathiesen take a look into the crystal ball for the coming year, he predicts the following: – We believe in growth in the number of turnovers in 2024 and a price increase of between 0 to 5 percent.
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7 out of 10 cabins are sold below the rate – news Vestfold and Telemark – Local news, TV and radio
