After five months of price increases, prices for used Obos housing in Oslo fell by 2.8 percent in October. “Surprisingly,” says the chief economist at Obos.
Nationwide, prices fell by 3.7 percent from September to October. This means that prices so far this year have risen by 5.4 percent in the Oslo area, for the whole country the increase is 3.1 percent since New Year.
In October, the average square meter price for used Obos homes in the Oslo area was NOK 62,882, which is 3.9 percent higher than in October 2018. For the country as a whole, the square meter price was NOK 54,500 in October, 2.5 percent up from October. last year.
October has traditionally been a slightly weak month. Obos prices fell on average by 0.3 percent in October from 2004 to 2018. In October last year, prices fell 1.4 percent.
– The fall in prices in October is surprisingly large. One reason may be that the housing supply is still very high and the home buyers have a lot to choose from. It may also be that the four interest rate hikes are starting to be noticed, says chief economist Sissel Monsvold in Obos in a press release.
She emphasizes that the numbers vary somewhat from month to month, which means that individual months should not be overweighted.
– “Some of the decline in prices in Oslo can be explained by the fact that more large homes have been sold, and they have lower average prices per square meter than small homes,” says Monsvold.
© NTB Scanpix / #Norway Today