DNB Markets estimates that house prices will increase further next year. The slower growth turnaround will not come until the first half of 2017
In its macroeconomic analysis, “Economic Outlook 2017”, DNB Markets estimate that house prices will rise by 8.3 percent this year and 9.0 percent next year in the country as a whole.
A low interest rate policy is stimulating the housing market, but we are trying to reach a limit, according to the macro report.
Interest rates will not fall further, and the current growth pace with ever higher household debt is not sustainable.
DNB Markets also points out that housing construction is on the rise, and that it is likely due to stricter regulation of mortgages from January.
Source: NTB scanpix / Norway Today