– It was a nice flat, but a small bathroom then, says Martine Grave (25). Together with roommate Jørgen Haavi (26), the first-time buyers are on display at Grünerløkka in Oslo. – The best thing for us is that the prices continue to fall. For those who sell at a loss, it is of course difficult, but we want to pay as little as possible, says Martine. On Wednesday, Eiendom Norge presented figures which show that their wish can be fulfilled. House prices fell by 2.2 per cent in September 2022. Adjusted for seasonal variations, prices fell by 0.6 per cent. – House prices fell sharply in September. The strong rise in August has now been completely corrected in the seasonally adjusted house prices, says CEO of Eiendom Norge, Henning Lauridsen. The Sambuar couple is happy about the development. – This was exactly what we were hoping for, and a development we would like to see until we have to offer apartments, says Martine today. Eiendom Norge presents house price statistics at 11 a.m. – Price falls common It is not unusual for house prices to fall towards the end of the year. Eiendom Norge expects that they will continue to fall in the coming months. – Uncertainty about the development in both the Norwegian and global economy makes it difficult to say whether the fall through the autumn will be stronger than normal. On the other hand, we will not be surprised if the price development in the autumn is weak, says Lauridsen. Earlier in the week, Obos, Norway’s largest housing developer, reported that their prices fell by 3.1 per cent from August to September. – Prices usually fell at this time of year, at the same time the decline was clearly greater than in previous years, explained chief economist Sissel Monsvold in a press release. The show at Grünerløkka is the second the couple attends. Despite the fact that you can make a good purchase, they want the feeling to be right. – We have spent a lot of time following Finn.no and how the stall rounds are going. They often go about their business more calmly now, he says. – Good news for some Ola H. Grytten is an economics professor at the Norwegian School of Economics. He believes that the falling prices can be good news for, among other things, first-time buyers. – If you have a secure job and a salary that can tolerate even higher interest rates, it is clear that you can make a bargain in the housing market now, says Grytten. Photo: Charlotte Haarvik Sanden / news When the banks assess a loan application, the borrower must be “stress tested”. That means checking whether he will be able to cope with an interest rate rise of five percentage points. With an announced interest rate of around 3 per cent, this means being able to handle a home loan with an 8 per cent interest rate. – Is this dishwasher big enough?, the cohabiting couple ask themselves. A lot must vote in an apartment for them to strike. Photo: Bjørne Østrem Djukastein / news – As the price increase is so high, the real interest rate is low. The falling house prices have a clear cost side, if everything else becomes more expensive, says Grytten. If the Ministry of Finance decides to change the lending regulations, it may become more difficult to get a loan after the New Year. This makes the next few months a window of opportunity for those who are ready to buy. The speech that was presented today was good news for the cohabiting couple in Oslo. – Now we have even more hope of buying before the New Year. Imagine having a Christmas party in a new flat, says Martine. Highest interest rate in 13 years Due to high price growth, Norges Bank has steadily raised the key interest rate since last autumn. Since zero interest in September 2021, in one year we have had the highest interest level in 13 years. The consequence of higher interest rates is that the loan becomes more expensive, and more people are pushed out of the market. The movements after the interest rate increase take time before they become visible in statistics, but the broker has close contact with buyers and sellers. She senses a change. – Although there is great interest in, for example, small apartments, we notice that there are slightly fewer people showing, says property broker Ane Line Plassen Nordbak. Although the housing sale has gone well, property broker Ane Line Plassen Nordbak notes that buyers are now more strategic. Photo: Alexander Granlie / Alexander Granlie In her hall area, Sagene og Bjølsen in Oslo, she says that after screenings, people are more expectant. – Nobody wants to be the first to bid, now it may be just over 12.30 before the round of bids starts. But there is still good room, she says.
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– Hopes for a price collapse in the housing market – news Norway – Overview of news from different parts of the country
