Nordlandsbyen had the weakest price development for housing in the first eleven months of 2023.
Until December 2023, housing prices in Bodø fell by 2.3 per cent on an annual basis. Photo: Håkon Mosvold Larsen / NTBPublished: Published:
Right now
– Full of contrast. We had the feeling that it was a decent start to 2023 considering that we were a bit worried about how it was going to turn out. We had good sales, but over the autumn you really noticed that there was a complete standstill.
This is how Tobias Bronder, general manager and professional manager at Partners Eiendomsmegling in Bodø, describes the housing market in the city in 2023.
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Until December 2023, prices for housing in Bodø and Fauske fell by 2.3 per cent, according to the latest available figures from Eiendom Norge. It is so far the weakest price development on the housing market in the year we just left behind.
Fear and skepticism
On Thursday morning, Eiendom Norge will present new figures for the last month of the year.
Bronder says he thinks house prices in Bodø will continue to fall in December, but that he sees the development in 2024 positively.
“Despite the interest rate increase in December, it has been nice to experience that we have now probably reached the interest rate peak, and that the interest rate can come down faster than we expected in the autumn,” he says.
Tobias Bronder, general manager and professional manager at Partners Eiendomsmegling in Bodø. Photo: Partners Eiendomsmegling
The general manager believes that it was largely fear among the buyers that caused the market to stop beyond 2023.
– We had many homes for sale in all segments and people were viewing, but were skeptical about buying due to uncertainty about further interest rate increases. Then the desire to buy disappears, even if the ability to buy is often there.
A good sale in a slow market
Several customers who did not get the opportunity for interim financing and a complete halt in the new housing market also contributed to the decline in Bodø in 2023, Bronder believes.
– If you have to sell before you buy, it becomes difficult. So it stopped a bit there too. In addition, the generation that would like to move into an apartment had nothing new to move to.
– What is important to think about when selling a home in a tight market?
– It is important to be prepared that it will take a little longer. In 2023, the homes were vacant for an average of 36 days.
In comparison, a home was on the market for less than half as long on average before it was sold in 2021, when Bodø was one of the cities in Norway that experienced strong price growth.
– As a seller, you must also be aware that selling at the asking price today is a good sale and that there will probably be fewer bidders.
– Only historically do you see the bottom
Bronder advises buyers not to think that the market will bottom before entering it.
– It is only historically that you see the bottom, and that can turn quickly. As a buyer, you only run the risk of waiting too long, so that it becomes more expensive, he says.
At the same time, there may be something to gain.
– If you are both a buyer and a seller in the same market, you will probably benefit from upgrading in this market.
– Can you explain why?
– Those who are going to upgrade to a larger home, often sell a smaller home that has decreased in value less than the home they want to buy.
You could almost say that the “discount” you have to give on the sale of a smaller home is lower than the “discount” you get on the one you buy, even if the percentage reduction is the same, explains Bronder.
– Another factor is those who are considering investing in property. If you have the opportunity to do so, the market we are in now is generally very favorable. And if we look even further back in history, it probably won’t take long before the previous price peak is touched.
– Probably sounds more dramatic
Frode Hansen is head of department at Eiendomsmegler 1 in central Bodø. He describes the housing market in 2023 as good, but with a weak ending.
– Activity decreased, and we have of course noticed the price trend at the same time. But the fall probably sounds more dramatic than it has been experienced.
Hansen says he thinks part of the price drop in Bodø is due to the violent price increase experienced by the housing market in the city a few years ago.
– We are quite privileged to work in Bodø, we rarely see the big business cycles here, he says.
Frode Hansen, department manager at Eiendomsmegler 1, Bodø centre. Photo: Estate agent 1
– It will probably be a little rough at the start
Like Bronder, Hansen believes that a sale of a home where you get a plus/minus price estimate can be considered good.
– The demand and the buyers are there, but preferably at a slightly lower price. But there are still good prices, he says.
At the same time, the work for the brokers becomes slightly different when the market is more sluggish than before.
– It is a marked change. The objects are further away, and there are more views and more work with all objects.
For 2024, Hansen describes himself as a sober optimist.
– It will probably be a bit rough at the start, but otherwise I think it will be a good year. At the same time, we see that new construction is still at a standstill, but I think we will see progress there as well.
Just before Christmas, Hansen’s office sold a detached house for one million kroner above the appraised value.
– So there is still a good market for good objects. But it is clear, on a general basis, it is more challenging.
2024-01-04 04:59:30
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