So far this year, house prices in Norway have risen by 6.4 per cent. The average price for a home in Norway was NOK 4,643,491 at the end of June. – We expect that the strong rise in interest rates will have an effect on house prices going forward. Much of the strong rise in housing prices in the first half of the year will probably be corrected in the second half of the year, says managing director Henning Lauridsen of Eiendom Norge. In advance, several top brokers predicted that Wednesday’s sales figures would give us the year’s first drop in housing prices. It is common for house prices to fall in June. But the seasonally adjusted development of minus 0.5 percent indicates a weak trend, according to the property manager. In May, house prices rose by 0.8 per cent and one per cent in April. This despite the fact that Norges Bank has raised the interest rate on several occasions and that mortgages have become more expensive. Henning Lauridsen is managing director of Eiendom Norge. Photo: Bård Nafstad / news Strongest development in Kristiandsand and the Stavanger region Despite a weak price trend in June, more homes have been sold in Norway now than at the same time in 2022. – This testifies to a healthy and well-functioning housing market, says Lauridsen. So far this year, 56,784 homes have been let in Norway, which is 5.2 per cent more than in the corresponding period last year. The strongest development so far in 2023 is in Kristiansand and Stavanger and its surroundings, with an increase of 11 and 10.3 per cent. Eiendom Norge expects a weaker development for house prices in Kristiansand and Stavanger after surprisingly strong growth throughout the spring. Here from the Storhaug district in Stavanger. Photo: Ole Andreas Bø / news The weakest development so far this year is Tromsø with an increase of 3.1 per cent. House prices higher than expected Several people have been surprised by the rise in house prices throughout the spring. In March, Norges Bank estimated that housing prices would fall by 2.9 per cent in 2023. Instead, prices have gone in the opposite direction. In its latest monetary policy report, Norges Bank predicted zero growth for housing prices in 2023. The central bank made no secret of the fact that the growth in housing prices throughout the spring was unexpected. Low unemployment and growth in real income so far this year have probably contributed to maintaining demand in the housing market, according to Norges Bank. The central bank’s forecast from June is that house prices will fall somewhat in the second half of 2023 due to high lending rates and a higher number of unsold homes. But from 2024, Norges Bank expects that prices will rise again due to low housing construction and that interest rates will stabilize and eventually decline.
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Housing prices fell by 1.2 per cent in June – news Rogaland – Local news, TV and radio
