– The sharp fall in house prices continued in November with a decrease of 2.2 per cent. In the last three months, house prices have fallen by 6.5 per cent and some areas now have negative 12-month growth, says CEO of Eiendom Norge, Henning Lauridsen. He believes that it is not unnatural that housing prices are corrected, but a large fall in housing prices will have negative consequences for the Norwegian economy through both lower consumption and lower housing construction, he says. The frequent interest rate increases from Norges Bank this autumn have put a clear damper on the housing market. Fewer sales In November, 7,321 homes were sold in Norway, which is 14 percent fewer than the corresponding month in 2021. So far this year, 88,383 homes have been sold in Norway. That is 9.7 percent fewer than in the same period last year. – Turnover in the housing market is now back at the pre-pandemic level. It also means that activity will decrease as normal in November and December, says Lauridsen. House prices fell by 1.9 per cent across the country in October. The Oslo figures from OBOS, which arrived on Thursday, showed a drop in housing prices of as much as 4.7 per cent in November. – House prices will continue to fall in November as expected, writes DNB Eiendom, which has made a separate analysis of house prices, in advance. – Negative price development is in line with what is normal at this time of the year, and especially in a falling market, says Renate Sørestrand-Hansen, head of DNB Eiendom. The interest rate pushes house prices down The price trend so far this year is up 4.7 per cent, but this autumn the trend reversed. The record high housing prices that characterized the corona era are among the reasons why Norges Bank has raised the key interest rate six times this year. At the time of writing, the interest rate is 2.5 per cent, and it will continue to rise in the spring. It is again the interest rate that is used as an explanation for why house prices fall, as Norges Bank wants them to. In a report from the company Samfunnskonkonik Analyze which was presented at the end of September, the forecast is a price drop of 8 per cent between now and 2023.
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