‘Nonsense’ to believe in long-term housing price drop in Oslo

House homesHouse. Photo. pixabay.com

All the arrows point upward for the housing market in Oslo, said partner, Bjørn Erik Øye, at the price forecast center.

 

 

On Tuesday, Eiendom Norge (Real Estate Norway) will present the price statistics for August.

‘I believe there’ll be a plus/minus zero for August. It’s bullshit to believe in a long-term price drop in Oslo if the economy develops as expected. All arrows point upwards.

Optimism has returned in full after the upturn in the oil industry. Interest rates remain low, and loan lending rates are likely to decrease even further. The fundamentals don’t indicate a sharp fall in house prices,’ said Øye.

The prices of Obos-associated housing in Oslo fell 0.6% between July and August. It was the fourth consecutive month that Obos prices fell in the capital.

Øye believes much of the reason is psychology.

‘Oslo had exceptional price growth, and became over-priced, and in need of a correction. It would have come anyway.

This time it was mortgage regulation that triggered it. Then it became psychological, and it happened quickly, as it usually does in the housing market.

That was the main reason for the fall in prices we have seen recently’, said Øye.

 

© NTB Scanpix / Norway Today

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