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Norwegian houses became more expensive despite the fact that the market tends to cool down in the autumn month.
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House prices rose 0.4 percent in September, according to recent brokerage figures. This is significantly higher than expected and seasonally adjusted inflation was 1.3%.
– It’s a rarity to be on the bright side in September, says Eiendom Norge manager Henning Lauridsen.
The Norwegian housing market has had a positive underlying price performance for five consecutive months, at the same time as the key policy rate has fallen to a record low of zero percent.
Strong jump in sales
September is considered a weak real estate month. The fact that prices are still rising isn’t the most surprising thing about the new broker’s report, according to Eiendom manager Norge:
– Perhaps most special is that 16.8 percent more homes have been sold than in September of last year, says Lauridsen.
September sales ended at 11,133 properties nationwide. It’s a record, according to the running association.
However, on average, it takes less time to sell homes than in August – the sales period has fallen from 54 to 48 days nationwide.
Porsgrunn and Oslo are national leaders
In September, 10,745 homes were put up for sale, 3.8 percent more than last year.
Lauridsen says that house price development is now strong in most of the country. After September, the twelve-month growth is 5.8 percent nationwide.
Inflation is strongest in Oslo and Porsgrunn, with a 12-month growth of 7.7%.
Lauridsen believes that the development is an argument against the government should listen to Finanstilsynet.
– We are in a situation now where it may be difficult for many to enter the housing market in the future. So it is important that the supply side is strengthened, says Eiendom manager Norge.
Predicting flat or falling house prices
– We are negative to the tightening proposed by Finanstilsynet of mortgage regulations. We are concerned that more people will be excluded from the housing market. We think the regulations are already strict enough, says Lauridsen.
When Eiendom Norge CEO Henning Lauridsen presented the previous report on the housing market, he believed that the interest rate cuts have now entered the market. He expected the market to normalize during the fall with falling prices towards the end of the year.
So far it doesn’t seem to be happening. Now Lauridsen says he expects “moderate development” for the rest of the year.
– What does that mean?
– We expect a curve going from flat to down now by the end of the year, Lauridsen tells E24.
– So: From here, the housing market should fall?
– We believe that a steady downward price trend is likely to occur.
