The housing prices have been rising every month in 2022. At the end of the quarter the prices are 7,2% higher than the beginning of the year. In Oslo the increase is a little bit lower with 6,9% increase in the same period.
There have been far too few houses on the market compared with the number of potential buyers.
The realtors are now telling that they have received many sales assignments lately and it is expected that there will be more homes for sale after the Easter holiday. That is good news for the buyers.
The big increase in already high house prices is not healthy in the long run.
Also, other prices are increasing in Norway and the inflation is increasing. Therefore the Central Bank of Norway has notified that the mortgage interest will increase 7 – seven times before the end of 2023. A rice of 0,25% has already been completed in March this year.
The interest rate is the most important factor when it comes to housing prices. It is therefore expected that the housing prices will flatten out throughout the spring.
There have been very low interest rates in Norway for many, many years. Many home buyers have not experienced increases in interest rates. Although the banks have been obliged to stress test their mortgage customers’ ability to manage an increase in the interest with 5%, it can be a challenge for some people to manage their housing costs. But experts believe that most people will manage this, they just have to reprioritize. Anyhow, a more moderate price development in housing prices will be a good thing.