Are you an English speaker who are planning to buy a home in Norway in the near future? Then you might be interested to know about the situation on the housing market right now?
High activity and rising prices
This headline summaries the situation in short. In spite of higher unemployment rate and difficulties in many industries, people are buying new homes like never before. It seems that the very low interest rate on mortgages overrides the negative factors of the Corona crisis.This together with an even bigger focus on the home and living conditions has led to a record number of sales during this summer and autumn. People have maybe experienced the “home office life” and found out that they need another type or a bigger home?
Before Corona most experts expected a moderate rise of the housing prices in Norway. This has not been the case and the prices are now 5,8% higher than 12 months ago in the country as a whole. In Oslo the price has increased with 7,7% the last 12 months and there are some worries that they will increase even more in the following months, up to a unhealthy level To keep up a healthy housing market it is important to have a balance between supply and the demand. This depends on, among other things, that enough newly built homes are put on the market.The supply of houses the market has been quite good so far. Despite that the prices have increased. Most people have kept their jobs during the crisis and the access of reasonable mortgages has been quite good .
The Mortgage Regulations from the authorities regulates how much the banks can lend people. The regulation has been softened a bit due to Corona, but will likely be tightened this november.
The forecast for the coming years.
Even if the economy in general will have a weak development in Norway, the experts have changed their earlier forecast regarding the housing prices. They now believe that the prices will rice with 4% or more the coming years. Development in housing prices is very important for the Norwegian people. Around 80% own their own home in this country and most people use a big part of their income in housing expenses.
Need help or want to know more?
The self-owner philosophy and favourable tax benefits for primary housing are also a trigger for foreigners who come to Norway. As a home buying consultant I experience an increase in inquiries from this group. With some help with understanding the system and the language they end up as satisfied home owners. Do you have question about home buying in Norway, please do not hesitate to contact me.On my blog you can read more information in English and stories from some of my customers.
Trude Larsen T: +47 950 37 330