House prices continued to rise in August – E24

The case is being updated …

Norwegian house prices rose 1.1 percent in nominal terms in August. Adjusted for seasonal variations, the increase was 0.3%.

House prices are now 4.3 percent higher than a year ago.

Appears in Eiendom Norge’s latest report.

Real estate agents have reported a fiery property market this summer and, as in July, there was record turnover in August as well, according to Eiendom Norge.

– House prices rose in August, which is normal for the month. The strong growth we’ve seen in house prices in recent months is now slowing down, and we expect house prices to follow the normal business cycle with prices falling towards the end of the year, says Eiendom CEO Henning Lauridsen Norge in a statement.

– A record number of homes are also sold in August. The growth in the number of transactions continues, and never before have so many houses been sold in Norway at the end of August as this year, it continues.

In the month of August, 9,964 homes were sold in Norway, 10.2% more than in the same month of the previous year.

So far this year, a total of 66,213 homes have been sold in Norway, 3.5 percent more than at the same time last year.

Waiting for moderate development

August is normally a strong month for the housing market, and Eiendom Norge describes the development in the last summer month of the year as close to normal.

– In our opinion, the zero interest rate is now included in the housing market, and now we expect house prices to fall normally during the fall, says Lauridsen, continuing:

– With weaker development during the fall, we expect nationwide house price development in 2020 to end close to Eiendom Norge’s forecast with a 3 percent increase. In that case, 2020 will be the third consecutive year with a moderate evolution of prices in the housing market, concludes Lauridsen.

Oslo had the strongest seasonally adjusted price performance in August, rising 1.2 percent. Stavanger and the surrounding area had the weakest seasonally adjusted price performance, down 1.1%.

Strong housing summer

DNB Markets expected a 0.7 percent increase in advance for Thursday’s August figures.

Norges Bank’s large interest rate cuts have made the housing market’s fall in the krone short-lived. After falling prices in March and flat development in April, the increase in May was the strongest in history, before prices rose further in both June and July.

Tom André Aas, director of communications and branding at Nordvik Eiendomsmegling, boasts of August, but doesn’t think autumn is that wild.

– August has been our best month since June and our second best month in Nordvik history. We sold a total of 547 homes in August, compared to 380 in August 2019.

– I see that several players are talking about a bonanza in the market this fall. I think it is as likely as a crab team without singing. We are planning a normal and good fall, and we believe in stable development, says Aas.