After four months of intense hunting, the housing dream finally came true for Uzma Shafi (27) in February.
– I still can’t believe that I have bought a home. It was quite big and nice, just as I thought, says Shafi.
The moving chaos is total because already on Monday, Sahfi, together with his four-year-old son, is moving into his first self-owned apartment. However, the road there has been demanding.
MOVING CHAOS: On Monday, Uzma Shafi moves into her new three-room apartment on Stovner. Photo: Odd Arne Hartvigsen / TV 2
Coup the home
– I bought it. I contacted the seller directly and submitted an offer, says Shafi.
After losing countless rounds of bidding, Shafi grew impatient. She found that those who were two more often had more to show up with.
– I read a bit online that sometimes you can buy houses, but I have been through so many bidding rounds and there are a couple who have won over me. And since I buy alone, I thought I might try it, says Shafi.
The mother of one works as an assistant at a primary school, and has an additional part-time job. She had been saving for four years but still needed help from Husbanken to get into the hot market in Oslo.
– Would you go out of town to make it cheaper?
– I thought about it, but then my son has kindergarten here, so I work in Oslo. We also have family, and his dad lives in Oslo. That’s why I thought it was nice to live near everyone, says Shafi.
Pushing prices up
In February, house prices rose by 1.5 per cent, say figures from Property Norway.
– It seems very strange when we have interest rate increases and rising house prices at the same time, says Hennig Lauridsen, CEO of Eiendom Norge.
OPP: On Friday, Henning Lauridsen, managing director of Eiendom Norge, was again able to present growth in house prices. Photo: Kristin Grønning / TV 2
The interest rate has risen to 2.75 per cent in record time, and in March Norges Bank announced another interest rate hike. Lauridsen also believes that the interest rate will be raised again in June, i.e. to 3.25 per cent.
– There are still not very many homes for sale, and that can probably help push prices up a little, says Lauridsen.
In addition, he believes that the relaxations in the lending regulations are helping to raise house prices. From 1 January, new borrowers must withstand an interest rate increase of three percentage points. Previously, they had to endure an increase of five percentage points.
Will change
Grethe Meier, chairman of Eiendom Norge and managing director of Privatmegleren, is not surprised by the growth.
– We have seen that there is a lot of traffic and there is good activity in the housing market, so we expected a price increase even before the figures came in today, says Meier.
EXPECTED: Grethe Meier, CEO of Privatmegleren is not surprised by the growth. Photo: Kristin Grønning / TV 2
People who sell their homes now get sold faster than a few months ago, says Randi Marjamaa at Nordea.
– Of those who do not get sold at the expected price, there are several who want to rent out the home to take advantage of a good rental market, says Marjamaa.
But both Lauridsen, Meier and Marjamaa believe that the market will be more lukewarm in the future.
HOT MARKET: There are more people who want to rent out the home, says Randi Marjamaa, head of personal market at Nordea. Photo: Magnus Nøkland / TV 2
– With still high inflation, even more interest rate increases are expected throughout the year, and we believe that this will put a damper on the housing market going forward, says Marjamaa.
Lower expenses
Shafi, who bought the home, ended up giving NOK 100,000 above the asking price.
And despite this, the monthly expenses actually go down, when she now goes from renting to owning.
– Are you afraid that you have paid too much?
– No, not really. There were several people who were interested in that home who wanted to offer more, says Shafi.
