The price of an average Norwegian home is now 6.4 per cent higher than a year ago. At the end of May, the average home in Norway cost just over NOK 4.7 million. – Housing prices in Norway rose sharply in May, and inflation was particularly strong in central Eastern Norway, says Henning Lauridsen, CEO of Eiendom Norge. Henning Lauridsen, CEO of Eiendom Norge, says that the housing market is still characterized by the low supply of homes from earlier this year. Photo: Bård Nafstad / news Lauridsen says that he is surprised by the strong price development. – When it comes to the supply side in the second-hand housing market, it is still weaker than in previous years, even though there has been a small growth in the number of new homes on the market through May, Lauridsen says. May is usually a month where prices rise. There has been positive price growth in eight of the last ten years. Many home sales in May In May, 10,436 homes were sold in Norway, just under 1 per cent more than in the corresponding month in 2021. At the same time, 11 per cent fewer homes have been sold so far this year than in the same period last year. The reason is, among other things, that the new Disposal Act, which came into force at New Year’s, has led to fewer homes on the market. Comeback for Oslo prices Oslo has lagged behind in price developments for much of the year, but house price growth has now exceeded the national average. The 12-month growth in the capital in May rose to 7.1 per cent, up from 4.6 per cent in April. Thus, Oslo had the strongest price development in the country adjusted for seasonal variations, at 1.6 per cent. This means that prices in Oslo rose far more than what has been a normal price development in recent years. Hamar w / Stange had the weakest seasonally adjusted price development with a seasonally adjusted decrease of 0.1 per cent. Bodø / m Fauske has the strongest 12-month growth with an increase of 10.5 per cent, followed by Kristiansand with 9.7 per cent. Expects weaker price development in the future The CEO of the Norwegian Real Estate Association, Carl O. Geving, is surprised by the strong price growth in the capital, but believes that interest rates and inflation will bite eventually. – There is no doubt that interest rate increases to the extent announced by the central bank will affect the housing market. You can compare the effect with a supertanker that slows down, it takes time before it loses speed, says Geving Randi Marjamaa, who is head of the retail market at Nordea in Norway, also expects price growth to slow down in the future due to more homes being expected to be outsourced. for sale. – We expect a flattening of prices over the autumn. Now we see that more customers are realizing purchases, and that the higher interest rate level has so far not scared those who have long wanted to buy a new home, she says.
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Strong house price growth in May – news Norway – Overview of news from different parts of the country
