Over the past year the prices of house cooperative dwellings have increased by 5.3 per cent. Prices have risen 1.3 percent during the third quarter. The figures from the Norwegian Housing Constructers Association (NBBL).
But the housing market is also marked by major regional differences. Inflation is high in Eastern Norway, particularly in Oslo where house prices have risen 19.9 per cent last year.
The third quarter has normally been marked by moderate growth. Looking through the figures of previous years, shows that this year’s rise of 1.3 percent is well above the average of 0.7 per cent last year
– The inflation has been surprisingly strong since easter.
It is due to three reasons. Firstly that lower interest rates makes us take up more and bigger loans.
The second reason is that the Norwegian economy has improved and the third reason is psychological. There is an expectation in the housing market that prices will continue to increase, Thor Eek, CEO of Norwegian Housing Construction Association (NBBL) says.
Source: NTB scanpix / Norway Today