In recent months, house prices have fallen. And it seems that the fall in housing will continue, we are to believe Norges Bank. They estimate that the price drop will be 4.3 per cent until next year. Simen Knudsen and Iselin Stendahl are both students. They are aware that falling prices can be a good thing for them. – There is a greater opportunity to enter the housing market now than there has been in recent years. Simen Knudsen and Iselin Stendahl rent a home today. They hope that the fall in house prices will make it easier to buy a house in the future. Photo: Ola Helness / news And that Eiendomsmegler 1 works Ørjan Tokle Sande agrees with. – If you have the opportunity to buy your first home, it is recommended to enter a market that is as it is now. There are few people at the viewing, less competition among interested parties and you can make a better home purchase than this summer. Here you notice that the market is changing. Takes more time than before – Property is still listed, but the turnover time is longer than before. It takes longer to sell a home. Earlier this year you could have one screening, but now we would like to have three or four, he says. – What happened? – Prices have gone down. This is due to both increased living costs and interest rate increases. But there are also regular seasonal fluctuations. Every year, the prices go down slightly towards the New Year. Ørjan Tokle Sande believes it will be difficult to say what will happen to the housing market next year. – But what we believe is: If we get a much-needed first quarter, then the rest of the year will bear its mark. If interest rate increases continue, we will notice it next year. Photo: Ola Helness / news – Are there many people waiting to sell and hoping that prices will go up? – There are probably more people who are waiting for interest rate hikes to calm down, and for prices to begin to stabilize and go up again, he says. The policy rate has been increased But the fall in housing prices may therefore continue. On Thursday, Norges Bank increased the key interest rate by a quarter of a percentage point to 2.75. But there may be more before the peak is reached. There will most likely be another jump of 0.25 percentage points in March and then we will be up to a policy rate of 3 percent. The lending rate to customers will then be 4.3 per cent. – The forecasts for the Norwegian economy are more uncertain than normal, but if things go as we now believe, the policy rate will be around 3 per cent next year, says central bank governor Ida Wolden Bache. Since September 2021, the costs of a normal mortgage of NOK 2 million have increased by NOK 42,500 a year, or NOK 3,500 a month, according to a calculation by Huseierne. – Most households must prepare for a harsh winter and spring. The households’ finances are under strong pressure due to increased electricity prices, increased municipal taxes and increased prices in general, says Carsten Pihl in Huseierne. From August this year to next autumn, Norges Bank estimates that house prices will fall by around 6 per cent. They believe that high lending rates are the main reason. Paul Kaspersen is happy about the decline in house prices. Photo: Ola Helness / news – The only good thing that could have happened Outside the brokerage house, news meets Paul Kaspersen. – I feel that prices have been high for far too long. It is difficult for young people to enter the housing market. This is the only good thing that could have happened. And if consumer economist Linda Tofteng Eliassen, consumer economist Sparebank 1, is to be believed, house prices will remain low – at least in the next year. Linda Tofteng Eliassen is a consumer economist at Sparebank 1, and believes that the price drop will extend well into 2023. Photo: Marius Fiskum – So we must take into account that when interest rates have been low for a very long time, house prices have increased very much. So some of what we see now is more of a normalization than a crisis. – What will it take for prices to start rising again? – That we get used to the interest rate level that we are now entering. We are going back to 2009 to find an interest rate that is at the level that is now. We had that for several years and got used to it. We expect house prices to rise in the long term, but not in the next year.
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Norges Bank believes house prices will continue to fall – news Nordland
