House prices in Norway rose by 0.2% in April

Oslo buildingPhoto: Terje Pedersen / NTB

House prices rose by 0.2% in April. As a result, house prices in Norway have risen by a total of 12.2% in the last twelve months.

According to Eiendom Norge, house prices in April have developed less than normal for this month in previous years.

The exceptions are Kristiansand, which had a price increase of 2%, and Stavanger, where the price increased by as much as 3.2%.

Prices fell by 0.2% in Oslo and by 0.4% in Trondheim and Bergen.

Sales of both new and used homes have been at a record high for the first four months of the year. In April, 8,761 homes were sold in Norway, which is 24.5% more than in the corresponding month in 2020.

Expecting weaker price developments

So far this year, 32,821 homes have been sold in Norway, which is 16% more than in the same period in 2020.

“We expect weaker price developments in the months ahead, and the shift in price development that many have announced is here now. This is not surprising in light of Norges Bank’s announcement of the first interest rate increase this autumn, the sharp rise in house prices over the past year, and the large growth in the number of new homes on the market,” CEO Henning Lauridsen of Eiendom Norge said.

It took an average of 39 days to sell a home in April 2021, down from 43 days in March. Oslo had the shortest sales time with 15 days, and Ålesund had the longest sales time with 75 days.

Moderate price reduction?

The Norwegian Real Estate Association says the housing market is still characterized by high turnover in many places but adds that they believe in a moderate price reduction when society opens up after the pandemic and new consumption opportunities arise.

“After falling prices two months in a row, we note that Oslo has reached the price peak for now, and we believe that the national price peak will soon be reached,” CEO Carl O. Geving of the Norwegian Real Estate Association said.

“We have had a year of extreme price increases in the housing market, but now we notice tendencies of a flattening in prices. Activity in the market is still high,” Randi Marjamaa in Nordea noted in a comment.

Source: © NTB Scanpix / #Norway Today / #NorwayTodayFinance

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