- Prices usually rise most in the spring, while they fall or flatten out in the autumn.
- House prices are seasonally adjusted to be able to distinguish between seasonal factors and trend.
- The difference between the change in actual prices and seasonally adjusted prices is attributed to seasonal variations.
Source: Eiendom Norge and Eiendomsverdi
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– We expect weaker price developments in the months ahead, and the shift in price developments that many have announced is here now. This is not surprising in light of the fact that Norges Banks has announced the first interest rate increase this autumn, the sharp rise in house prices over the past year and the large growth in the number of new homes on the market, says CEO of Eiendom Norge, Henning Lauridsen.
Weaker than normal
Eiendom Norge points out that prices in April this year developed weaker than normal for the month. The exception is in Stavanger and Kristiansand, where prices rose sharply.
April is usually a good month for the housing market, and on a national basis no fall in house prices has been registered in April since 2003.
In April last year Prices rose surprisingly 0.5 percent nationwide, despite a fear that the corona outbreak would affect both prices and transaction volumes.
Record high sales
During April, sales of both second-hand homes and new homes increased sharply. Never before have so many homes been sold in Norway during the first months of the year, Eiendom Norge states.
– In April, significantly more homes were sold than in the same month last year. It has to do with the corona pandemic that broke out in March last year, and which had a major impact on turnover in the housing market in March and April 2020. At the end of April, we are also well above 2019, which was the previous record year measured in turnover, says Lauridsen.
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8,761 homes were sold in Norway in April, which is an increase of 24.5 per cent compared with April last year.
So far this year, 32,821 homes have been sold in Norway. This corresponds to 16 per cent more than in the same period last year.
Expecting subdued inflation
Andreas Benedictow, chief economist at Samfunnsøkonomisk analyze, expects a slowdown in house price growth going forward, but still believes that prices will continue to rise in the coming years.
In a recent forecast report, Benedictow estimates that house prices on a national basis will rise by 20 per cent from 2021 to 2024. Towards the end of the forecast period, the forecast is a house price increase of around two per cent on a national basis. Adjusted for inflation, this means that prices will stand still.
– High housing construction and moderate population growth on a national basis contribute to this, says Benedictow.(Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using a link, which leads directly to our pages. Copying or other use of all or part of the content may only take place with written permission or as permitted by law. For additional terms look here.
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