Housing prices in Norway fell by 0.2% in June

Houses - OsloPhoto: Håkon Mosvold Larsen / NTB

Housing prices in Norway fell by 0.2% in June. In the last year, prices have increased by 10.1% in total.

Adjusted for seasonal variations, the prices increased by 0.2%, according to figures from Eiendom Norge. It took an average of 29 days to sell a home in Norway in June.

“House prices in Norway developed moderately in June, which is normal for the month. As it looks now, the peak in house prices was reached in March after the strong rise from the summer of 2020,” CEO Henning Lauridsen of Eiendom Norge stated.

He also expects moderate price development in the future.

After a sharp rise in prices over the past year, house prices leveled off this spring. In recent months, prices had fallen in Oslo, which previously had significantly stronger growth than the rest of the country.

Interest rate increase in the autumn

 An interest rate increase is expected this autumn.

“The demand for housing has so far been far stronger than one might expect in a normal year. Norwegians are giving high priority to housing, the low interest rate level has stimulated the desire to buy, and the result is rapid sales and a record number of sales,” CEO Carl O. Geving of the Norwegian Real Estate Association noted.

Nordea states that many people want to get a cabin, which is typical for the season. But the buying pressure is extra great due to the low interest rate and the focus on domestic Norwegian holidays.

“House prices will probably remain more stable in the future, which is good. We believe that the strong growth has passed and that there will be a more even development in the future,” Randi Marjamaa, head of the retail market at Nordea Norway, stated.

Trondheim registers strongest annual growth

In June, 11,698 homes were sold in Norway, which is 5.5% more than in the corresponding month in 2020. A total of 11,848 homes were put up for sale in Norway in June, which is 7.9% more than in the same month last year.

House prices in Oslo fell by 0.4% in June, falling for the fourth month in a row. There was also a decline (-0.6%) in Bergen. However, there was a strong increase in Trondheim (+0.9%) and Stavanger (+0.9%).

Trondheim now has the strongest price growth in the last year, with 10.7%. It is stronger than Oslo (+10.3%), Stavanger (+10%), and Bergen (+8.7%).

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

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