Half of those asked believe housing prices will increase in 2020, according to a survey of Norwegians’ expectations of housing prices. This is a strong increase from last year.
Last year, 35 per cent said they “believe house prices will increase” in 2019 in the same survey from Nordea. The expectation was then an unchanged price trend or price fall, writes E24.
Figures from the beginning of December show that house prices in the country have risen by 3.1 per cent in the last twelve months. The survey says nothing about how much people think prices will rise.
John Sætre, head of the retail market at Nordea, emphasizes that expectations can affect how house price developments are since the market is affected by psychology.
He also points out that unemployment is low and that many have good faith in their own finances. In addition, the key policy rate is still low at 1.5 per cent, and economists see few signs that interest rates will be raised in the first place.
Jan Ludvig Andreassen, chief economist at the Eika Group, is far from as optimistic as most people. He points out that Norway is facing five years of recession, and that it will cool down the housing market as well.
“In the capital, I think we will see price growth in 2020, due to high influx. But I think prices will fall by three per cent in the rest of Norway, and that national price growth will end at minus 0.5 per cent,” says Andreassen to E24.
© NTB Scanpix / #Norway Today