DNB forecast: Cheaper to rent than to own in Oslo
DNB believes it will take around three years before housing prices in Oslo are back at the level from last spring. Therefore, it may be cheaper to rent than to own in the short term.
Many potential buyers are sitting on the fence after three months of housing prices in Oslo, writes Finansavisen. There they should be staying for a while, according to Dnb.
– According to our forecasts, house prices will fall further, but at a slower pace, until the summer of 2018. Then we expect stable prices, and a slight increase in 2019 and 2020, says chief economist in DNB Markets, Kjersti Haugland. Only by the end of 2020, the bank believes that prices are back at the level from this spring.
– If our estimates are correct, the cost of renting will be less than the cost of borrowing to buy housing over the next three to five years.
At the same time, she points out that the fall in prices may be greater than the bank believes, and the downturn may also be replaced by a marked increase in prices. A few years ago, the bank predicted a decline, while the reality was a solid upturn.
– I have to stress that there is a lot of risk attached to this. There are very many factors we do not have control of, says Haugland.
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