Property brokers fear that house prices in Oslo are going to rise sharply in 2017. In the past year, house prices in the capital rose by 22%, which they believe is extremely high.
And with very few homes for sale at the beginning of 2017, there is nothing to suggest that prices are going to fall.
‘We believe that the price trend in the Norwegian market will be very divided between different parts of the country. We fear that prices in the Oslo and Akershus region will increase sharply in 2017, so long as the economy is not hit by external shocks’, said CEO, Carl O. Geving, of Norwegian Real Estate Agents (NEF) to NRK news.
An external economic shock may cause the credit supply to become choked, or interest rates to rise rapidly.
‘As long as the Norwegian economy is going well, and purchasing power remains on an even keel, and interest rates do not rise too much, then higher house prices in Oslo and Akershus may continue for some time’, said Geving.
The annual rise in house prices for the whole of Norway was over 11% in 2016.
Source: NTB scanpix / Norway Today