The downturn in the housing market may be over

House for saleHouse for sale.Photo: Jarl Fr. Erichsen / SCANPIX
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More people are now expecting higher house prices, and the decline in the market as a result of the Corona crisis may be over. This is partly due to zero interest rates, according to NBBL.

The proportion who believe in falling house prices, have been reduced from 41 to 26 per cent, according to the Housing Market Barometer of the Norwegian Housing Association (NBBL).

The proportion of people who believe in a price increase is up from 15 to 27 per cent.

This must be seen in the context of expectations for the labour market and the interest rate picture, says chief economist Christian Frengstad Bjerknes in NBBL.

– And interestingly enough, people’s expectations seem to be contrary to Norges Bank’s and Statistics Norway’s projections of sustained higher unemployment, he says.

In May, 7 percent feared losing their job, down from 11 percent in April. The average for the past two years was 6 percent. Five out of ten expect unchanged or lower mortgage rates next year, while four out of ten expect an increase.

© NTB Scanpix / #Norway Today

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