– Prices tend to fall in December, but fell far more than normal in December last year, says Chief Economist Sissel Monsvold in Obos in a press release. The housing market is therefore cooling down further after several months of decline. The Obos figures account for approximately a quarter of homes sold in the capital, and a much lower proportion nationally. On average, prices in Oslo have fallen by 0.7 per cent in December over the past ten years, according to Obos. The fall this autumn has been so strong in the capital that the upswing at the start of the year has come to nothing. Over the past twelve months, prices have fallen by 1.6 per cent, while on a national basis, prices have remained unchanged from December last year. I think new loan rules will dampen the fall Brokers’ industry organization Eiendom Norge will come out with figures for December next Wednesday. Obos believes their own figures are weaker than Eiendom Norge’s figures. – The figures must be interpreted with caution because fewer homes were sold than usual, says Monsvold. DNBs believes that the figures from Eiendom Norge will show that prices fell by 2 per cent in December. – It is primarily the marked rise in interest rates that has led to the marked, negative turnaround in prices, says chief economist Kjersti Haugland. Obos believes that house prices will fall by 2-3 per cent in Norway this year, and will be dampened by the fact that the government has made it a little easier to get a mortgage. – We assume that a good part of the price drop was taken out through the weak autumn last year. […] The changes to the requirements for serviceability in the lending regulations from 1 January this year will dampen the price drop somewhat. So does higher wage growth and increased net immigration. At the same time, we want to emphasize that the uncertainty is great, says Monsvold. Sees interest rate peak in March Norges Bank has announced a further rise in interest rates at the start of 2023. – Interest rates will probably reach a peak in March next year, and by then we also believe that the fall in house prices will be over, so that prices will rise again, albeit moderately. The tight supply side, particularly in central areas, is an important reason why we believe the potential for a large fall in house prices is limited, says Haugland. 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 interest rate means increased expenses if you have a mortgage
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Steep decline in Obos prices in December – news Norway – Overview of news from various parts of the country
