In March, prices rose by 1.2 per cent, shows the price index of Eiendom Norge. It is the strongest growth since 2016 for a March month. Seasonally adjusted, the price increase is 0.5 per cent, meaning that prices have risen more than normal in March. The fall in housing prices in the autumn turned to an increase over the New Year. For the third month in a row, house prices are rising nationally. – House prices rose sharply in March. So far this year, house prices have risen by 5.8 per cent, and most of the fall in house prices through the autumn of 2022 has now been recovered, says CEO Henning Lauridsen of Eiendom Norge. In all of the country’s largest homes, house prices rose in March. Prices rose by 0.6 per cent in Oslo, 1 per cent in Bergen, 0.9 per cent in Trondheim, 2.6 per cent in Stavanger and 0.9 per cent in Tromsø. Policy rate in percent The policy rate is set eight times a year by Norges Bank. The policy interest rate governs the interest rates in the banks, and affects your housing costs. The aim of raising the interest rate is for the high prices to come down again. The forecast tells us how Norges Bank thinks interest rates will develop in the future. Read more about sources and reservations here. A higher policy rate means increased expenses if you have a mortgage 2021 2022 2023 2024 2025 2026 Forecast Norges bank Thinks prices will continue to rise The price increase so far this year has surprised economists and brokers. Mortgage interest rates have risen sharply and sharply, prompting many to predict a fall in prices. The broker manager himself has also missed the mark. – In 2023, the housing market has proven to be less interest-sensitive than many thought. The rise in the first quarter is significantly stronger than our forecast for 2023 from December, says Lauridsen. SURPRISING: The economists’ rule of thumb is that house prices should fall when the key interest rate is on the rise. But so far this year, prices have risen. Photo: Håkon Mosvold Larsen / NTB – The strong development must be explained by the fact that the Norwegian economy is doing much better than many imagined at the start of the year, in combination with the easing of lending regulations from New Year. – In addition, fewer second-hand homes have been put up for sale throughout March. If there is no spring flood on the supply side after Easter, we will still see growth in house prices going forward, and that even if interest rates were to be raised further, says Lauridsen. Interest calculator The calculator uses the formula for annuity loans to calculate your monthly costs. Nominal interest is used here. This means that there will be an additional transaction fee which will vary from bank to bank. Today’s interest rate is taken from DNB’s mortgage interest rate for young people, and different banks will have different interest rates. The figures given here will therefore be approximate for you. Monthly expenses are interest and repayments combined. Read more about sources and reservations here. See how much you have to pay if the interest rate increases.
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