Despite the pandemic, housing prices in Norway have risen by 7% in the first ten months of the year. NBBL expects price growth of 3% next year.

In the Co-operative Housing Federation of Norway’s (NBBL) barometer for the housing market, nine out of ten respondents answered that they expect rising or unchanged housing prices next year. 

The NBBL estimates a price increase of 3%.

“Low interest rates, fewer unemployed, and expectations of a future vaccine give good reason to believe in rising house prices also in 2021. 

At the same time, tighter mortgage regulations, lower population growth, and relatively high levels of housing construction on a national basis will curb inflation,” chief economist Christian Frengstad Bjerknes in NBBL noted.

Expectations of rising prices

A narrow majority of 52% of those surveyed believe that prices will rise next year as well, while 34% believe that prices will remain unchanged. 

At the same time, 48% believe that interest rates will remain unchanged next year, while 37% believe in higher interest rates.

“The Norwegian economy has fared better than feared through the corona crisis. 

“With a vaccine on the way, falling unemployment, and high house price growth, Norges Bank can consider it necessary to raise the key interest rate faster than planned,” Frengstad Bjerknes said.

The survey was conducted between November 10 and November 16 by Opinion, and a nationally representative sample of 1,000 people was surveyed.

© NTB Scanpix / #Norway Today