House prices in Norway rose by 3.2% in January

House prices rose by 3.2% in January. Taking the January increase into account, house prices have risen by 8.6% in the last twelve months.

Adjusted for seasonal variations, prices rose by 0.7% in January, new figures presented by Eiendom Norge on Wednesday show.

As expected, the housing market’s strong price development continued in January.

“There was a particularly strong rise in Eastern Norway, Southern Norway, and South-Western Norway,” CEO Henning Lauridsen of Eiendom Norge noted.

In Oslo, there have been a lot of hot bidding rounds. Lauridsen warns against buying homes and stretching too far in bidding rounds.

“Historically, we see that it makes the risk of loss great. As interest rates rise, house price developments will become more moderate. Even with zero interest rates, there is a ceiling for how much house prices will be able to rise,” Lauridsen said.

Fewer homes put up for sale

A total of 6,903 homes were sold in Norway in January, which is less than in the same month last year. Fewer homes were also put up for sale.

“Significantly fewer homes were sold in January compared with the same period last year. However, we expect that both new homes on the market and the number of sales will increase in the coming months,” Lauridsen added.

It took an average of 60 days to sell a home in January 2021, which is the same as in December 2020. Oslo had the shortest sales time with 22 days, and Ålesund and the surrounding area had the longest sales time with 87 days.

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

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