Stricter borrowing requirements, and lower than expected population growth in Oslo, make Eiendom Norge change forecasts to 5% growth in 2017 housing prices.
The initial forecasts were for a 10 to 12% rise in Oslo prices this year.
‘We’ve seen an approximately 5% rise in prices in the first quarter, and I think that’s the best we can achieve for 2017,’ said Christian V. Dreyer of Eiendom Norge to TDN Finans, according to Dagens Næringsliv newspaper.
He added that the requirement for borrowing no more than 5 times one’s income has affected prices harder, and earlier, than many believed it would.
Additionally, with many homes being built, population forecasts from Statistics Norway are lower than expected for Oslo.
However, CEO of the Boligprodusentenes Forening (House Builders Association), Per Jæger, doesn’t think that too many Oslo homes are being built.
Source: NTB scanpix / Norway Today