– There have been major fluctuations in house prices in 2022. First with the strongest rise in history in the first quarter triggered by the new disposal law. Since the sharp fall in house prices from and including September in the wake of Norges Bank’s interest rate increases. That’s what the CEO of Eiendom Norge, Henning Lauridsen, says. House prices tend to fall at the end of the year. This year’s price drop in December was almost as normal. Seasonally adjusted house prices rose by 0.2 per cent in December. This is how house prices developed in December in various parts of the country: Oslo: 0.1 per cent up Bergen: No change Stavanger: 2.9 per cent down Trondheim: 0.5 per cent up Tromsø: 0.5 per cent up Strong interest rate jumps 2022 ended then with a price increase of 1.5 percent. Last year started with a sharp rise in prices. In the autumn, things turned around, and the fall in house prices almost ate up the growth from the first half of the year. Increased interest rates are cited as the most important reason for the fall in house prices this autumn and winter. Until September 2021, the key interest rate was 0 per cent. Since then, Norges Bank has raised the interest rate to 2.75 per cent. Norges Bank has announced a further increase in interest rates of 0.25 percentage points at the start of 2023. By then, most people will receive a mortgage interest rate of over 4 per cent. 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 the electricity charges and when you get electricity support here. A higher policy rate means increased expenses if you have a mortgage. Property Norges expects house prices to continue to fall. In 2023, they expect a decline of 3.5 per cent. Fewer homes sold Although prices remained stable, the number of homes sold fell sharply. In December, 3,034 homes were sold in Norway. That is 25.2 percent fewer than in the same month in 2021. – Turnover in the housing market ended in 2022 at almost the same level as in 2019. It is now correct to state that the pandemic stimulated housing turnover in Norway significantly, Lauridsen says.
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House prices fell 0.9 per cent in December – news Norway – Overview of news from various parts of the country
