Wednesday , January 26 2022

Surprised by the increase in the price of apartments in Oslo


Although nominal housing prices in Norway throughout the country fell by 0.6% in October 2018, they rose by 0.1% in Oslo.

"It was surprisingly positive," says chief economist Neyra Macic at the Prognosis Center.

Oslo had the highest growth of 12 months with an increase of 5.0 percent, while Bergen and Porsgrunn / Skien had the weakest growth of 12 months, with a growth of only 0.1 percent.

It shows the statistics of the prices of housing units throughout the country, which is prepared by assets value for property of Norway.

"In the future, we continue to believe that the increase in bids will be somewhat higher than it may require foreign demand, so we believe that the price of the drop in the year and the beginning of 2019 will be a bit weaker than the beginning of the year," Mačić said.

It shows that in October it sold ten percent more homes than in the same month last year, but only sold six percent in the same period.

"This is also an indication that prices are falling down," Machic said.

Oslo was also the city in which it sold the most quickly in October, with an average selling time of 25 days, to 43 days on a national basis. The slowest went to Kristiansand for 79 days.

Against the normal

Senior economist Marius Gonsholt Hov at Handelsbank shows that house prices in Oslo usually increase in October, but have fallen by 0.1 percent seasonally. Also, nominally they grew less than normal.

– Of course, prices have grown slightly less than normal, says Hov.

Handelsbanken shows that the slopes have developed in the last few months poorly from the whole country and were negative than usual for the season. However, the October events were better than Handelsbanken expected from Obos statistics that came on Friday. Osos' flats fell 1.6 percent on average in October, compared to a normal 0.2 percent on average over the past 13 years.

Handelsbanken believes that there is still a risk that housing prices will fall short-term, especially for Oslo, according to recent updates. The Bank continues to believe that the case is short-term, indicating that the construction of new apartments will eventually be replaced by lower construction activities, while the activity of the housing market is high.

"The list of dwellings has grown steadily, but we believe that demand will absorb increased supply in the next few years. We keep our opinion on a moderately positive price trend in the next few years," it says in its update in line with today's housing price statistics.

Work as usual

Managing Director Karl O. Geving, a Norwegian real estate brokerage agency, thinks that he is now "a job as usual" in the housing market.

"It's been a long time since the market has worked well, it's a great deal of sales, while the temperature is lower, and the turnover time is longer." This suggests that sellers are more realistic and that buyers expect a stable housing market in the future, Geving believes.

High activity

According to Nordea, many home buyers now come into contact with the bank to obtain financing certificates, and many are realized in the form of purchases.

– During October, we issued more than one standard of financing for the usual time for this year. We see that there are many houses for sale on the market, and sales are good, "says John Sætre, head of the Nordea Norvai personal market.

However, price movements are rejuvenated by Nordea earlier this year, and the bank believes that this will be the trend ahead.

"There is a reasonable market balance now, where prices are no longer increasing at a rapid pace we've seen before.

He points out that Nordea has so far not seen signs that the change in interest rates is changing from the Norwegian bank, and the adjusted path of the interest rate on the housing market leads to a major blow.(Rules)Copiright Dagens Næringsliv AS and / or our suppliers. We want to split our business using a link that leads directly to our site. Copying or any other form of use of all or part of the content may only be in writing or by law. For further conditions, see here.

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