THE SQUARE IN OSLO (Nettavisen): After Friday’s press conference, the managing director of Eiendom Norge, Henning Lauridsen, admits that he has some concerns about the housing market.
– I am not worried about the second-hand housing market, but the new housing market is in crisis at the moment, says Lauridsen to NEttavisen.
The director further tells Nettavisen that the situation could have major consequences for the construction industry in the coming years.
– This has many consequences, primarily for the construction industry, architects and construction workers who may lose their jobs. The homes that are not built in 2023 will also not be finished in 2025. In two years there will be a shortage of homes.
As a result of the ever-increasing population growth, especially with the increasing influx of refugees to Norway, the demand for housing is higher than normal, and it poses a challenge that not enough housing is being built, according to the director.
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– We need clear measures
Lauridsen makes no secret of the fact that the solution lies with the government. He wants various measures to be put in place so that it will be possible to build new homes.
– The state budget is a natural place to carry out such measures to make it easier and less expensive to build new homes, while at the same time the demand for homes increases, says the director.
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Over the past year, Norway’s population has increased by a whopping 63,700 people, which marks the most significant population growth since 2012. At the same time, the statistics show that the number of births is at its lowest level for a full 40 years.
The reason for the high population growth is an increase in immigration as a result of the war in Ukraine, writes senior advisor Anders Sønstebø in a press release.
– Norwegian municipalities can, for example, be temporarily allocated funds to buy homes and get housing projects started. This can be used to meet the need to house refugees and others. This will help to increase housing production, says Lauridsen.
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Strong interest rate increase
House prices fell by one per cent in October. Adjusted for seasonal variations, prices rose 0.2 percent. So far in 2023, house prices are up 2.6 percent.
The average price for a home in Norway is 4.3 million, according to brand new figures from Eiendom Norge, presented on Friday morning.
– The interest rate increase is obviously the main reason why prices have fallen, both in the previous month and in general. The interest rate is the most important factor affecting house prices. When interest rates rise, it affects the household economy more than other factors, says the director of Eiendom Norge.
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A particularly dark statistic is that in October there were 2,757 unsold homes in Oslo, up from 2,551 in September. This is the highest level in six years, according to DN.
Randi Marjamaa, head of personal market at Nordea, says that it is now more difficult for many customers to sell the homes they 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 financial security in a house change, says Marjamaa
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2023-11-03 18:26:14
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