THE SQUARE IN OSLO (Nettavisen): So far in 2023, housing prices are up 2.6 percent.
The average price for a home in Norway is 4.3 million.
This is shown by completely new figures presented by Eiendom Norge on Friday morning.
Eiendom Norge experienced a decline of 1.9 per cent from August to September. This was the second weakest September in the history of house price statistics.
– House prices fell by 1 per cent in October, which is a weak development, even if the seasonal adjustment is slightly positive. The seasonal adjustment has been significantly increased in both September and October due to the fact that the development in the autumn of 2022 was particularly weak. Therefore, less emphasis must now be placed on the seasonally adjusted figure, says managing director Henning Lauridsen of Eiendom Norge, in a press release.
A particularly dark statistic is that in October there were 2,757 unsold homes in Oslo, up from 2,551 in September. It is the highest level in six years, according to DN.
He believes that it will only get worse in the future.
– We expect a weak price development in housing prices in the last two months of the year. As it looks at the moment, the nominal house price development in 2023 will end around zero, he says.
Rentesmell
Several market experts have also predicted a tough autumn ahead for the housing market after a sharp increase in interest rates from Norges Bank this year.
– The housing market is now clearly affected by the interest rate increases, and our economists expect a continued tired market with some price declines over the winter, says Randi Marjamaa, head of personal market at Nordea, in a message after the housing figures were presented.
– We see that it is more difficult for many customers to sell the home they have put on the market. Sales take longer, and prices often have to be adjusted down. More people than before are choosing to sell before they buy a new home, to ensure more financial security in a house change, says Marjamaa.
See the press conference here!
High interest rates
Norges Bank has decided to keep the policy rate at 4.25 per cent during the penultimate interest rate meeting this year. This interest rate break is the first since January.
They have also informed that the interest rate will probably be increased in December.
– Towards the meeting in December, the committee will receive more information about the price outlook. If we become more certain that the underlying price increase is on the way down, the interest rate can be kept calm, says central bank governor Ida Wolden Bache in a press release Thursday morning.
Norges Bank reports that the background is that the labor market is still tight, but the pressure on the Norwegian economy is easing.
Big differences in the housing market
– This gives reason to raise red flags, and we should be particularly vigilant. When that happens at the same time, there can be a surplus of homes in the market which can help push prices down, says chief economist Kyrre Knudsen at Sparebank 1 SR-Bank in a report.
In October 2023, the overview of unsold homes in Norway gives cause for concern in certain areas.
Some places have experienced a significant decrease in unsold homes since 2009, such as Agder and Rogaland by 20 per cent. Drammen and its surroundings, on the other hand, have experienced an increase of 134 per cent in the number of unsold homes in the same time period.
2023-11-03 10:00:13
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