How is the housing market in Norway in Corona times?

Av: Dato: English

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?

Price development – updated 15.03.21

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 8% higher than 12 months ago in the country as a whole.  In Oslo the price has increased with 15% 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 main reason why the prices have increased and the demand from buyers is so high is the low interest rate.

New regulation on requirements for residental mortgage loans.

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.

Read:  Remember that the bid is binding when you buy a house in Norway

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.

Best regards
«Boligdama»

Trude Larsen T: +47 950 37 330

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Remember that the bid is binding when you buy a home in Norway

Av: Dato: English

In my work as a home buying consultant I have experienced that people with foreign background often are unaware of the fact that the bid is binding when buying a property in Norway.  They ask me to check the purchase contract after already giving a bid on the property.  

That is actually too late in relation to the system for buying and selling homes in Norway:

Your bid is binding once the seller has accepted it.  That means that you have to check both the sales material and the property before you give a bid.  You have no regrets unless the seller have given you very wrong and defective information about the property.  This is seldom the case because the real estate agent are helping the seller to give the correct information in the sales material. The purchase contract is merely an affirmation of what has been agreed through the bidding process.

Read about the penalties and risk for a walk-away buyer here.

I am not very surprised that people from other countries misunderstand this, because most other countries have some sort of right of withdrawal or system for checking the property after the bid has been accepted.

The Norwegian system gives the buyer a big responsibility, and you have to work very hard in advance of the bidding round to check the sales material and the property.

If you need help in connection with buying av property in Norway please contact me on e.mail:
trude.larsen@boligkjopsradgiver.no

Read:     To buy a house in Norway from abroad.

 

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To buy a house in Norway from abroad

Av: Dato: English

Mr. Shehzad had previously lived in Bergen and worked as managment counsultant focusing on the oil industry.  Now he is posted in Qatar and he was looking for someone to help him and his family to buy a nice house in the Oslo area.

He contacted Boligkjøpsrådgiver Krogsveen by telephone and mail, and after a short time he engaged us to assist him and his wife and three daughters in the house hunt.

He overlooked the process from abroad while his wife took care of the viewings together with the home buying consultant . It proved to be a successful division of labour.

As usual the woman has the final word when it comes to home buying, and after a while she and the family decided that Nesøya in Asker was a very pleasant place to live.  The wish came true and after a little while they won the bidding round on a very nice and  quite new house in a quiet place in Nesøya.

The family was especially concerned about the condition of the house.    «Therefore it was very useful for us that the home buying consultant examined the sales material and the technical report to avoid any surprises and complications», emphasis Mr Shehzad.  And he continues:  « It was very useful that Morten came along together with my wife on the viewings». The help of the home buying concultant was critical in buying this house specially during my absence from Oslo».
«I think it is remarkable that we achieved this objective without meeting face to face.  Thank you for your cooperation «, he concludes.

Congratulation with your new home

The pleasure in on our side.  We are very happy to help another international family to find a new home in Norway.

 

 

 

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Congratulation to our international family

Av: Dato: English

This story is about Marine and Kotaro who just bought a home in Norway, less than 3 months after they arrived in Norway to work as researchers.  They are a living proof that it is possible for newcomers to do what almost all Norwegians do – own their own home.  They just needed some help, which home buying consultant Trude Larsen in  were delighted to give them.

The first steps

They came in contact with Boligdama Trude Larsen, while they were still in the states and after searching the internet.   The first step was to correspond by e mail about financing, information about mortgage possibilities in Norway and house prices in the different areas that would suit the family.  They arrived in Oslo at Christmas and rented an apartment on a short time lease.  After meetings with a couple of banks in January they were ready to being the house hunt together with the home buying consultant.

A lot of courage

It takes courage to hunt for a semi detached house in the Oslo area just when the market is on its peak.  But this couple where very courageous and determined to get what they wanted, a nice family house with good communications to Oslo and the Oslo airport at Gardemoen.

After the financing were finalized in mid February we could start our house hunt for real.  Both the home buying consultant and the family found and exchanged suitable objects on finn.no, the site where all properties are advertised in Norway.   The job of the home consultant was to assess and ensure the quality of the houses based on the sales material and their market knowledge.  To give advice about possible selling price and bidding strategy was also a very important part of the process.

 Close communication

Thanks to a tight and straight forward communication from Marine and Kotara and their eagerness to view different properties we were able to find a house after less than a month with active search.  And we succeeded in finding a detached house in the same area which we one week before had lost the bidding round, to a lower price.  Our concern as home buying consultant was to help them to find a suitable house to live in an at the same time try to ensure that they would get their investment back when they hade finished their work in Norway after 3 – 4 years.

The couple describes the buying process and their new home like this:

What did you appreciate the most of the help you got from the home buying consultant?

It was great to get help to understand the system of home buying in Norway and be guided through the whole process from getting a loan, reading through all the documentation, doing the biding, to reading the final sale contract and getting the keys of our new house! The home buying consultant Trude made us more secure in the process so we felt like we were able to make good decisions. The fact that the home buying consultant works only for the buyer and that we paid a flat fee, not pro-rated on the price of the house, made the whole experience very pleasant, because there was no pressure to buy as soon as possible the most expensive house. On the contrary, we could feel that Trude wanted us to get a good deal and find a house that we loved that would fit our needs, wishes and budget!

What are the favorite features in your new house?

We were originally looking at a row house, but were very fortunate to find a detached house in our price range! We love the garden, which will be perfect for our young son and our dog.  The house is very light and well kept so we can move right in.  It was very important for us to be able to have our parents visit us, and the house is perfect fit for that. The location is perfect: quiet, easy commute to Oslo and very child friendly!

Would you recommend other foreigners to buy a house in Norway?

Yes, if you have the money we would recommend it.  The housing market in Norway is based on self owning.  It is quite expensive to rent a house with a good standard.  The housing market has been very good for sellers so far in Norway so we hope to get our investment back after a few years.

Congratulation and thanks

Congratulation to Marine and Kotaro, their little son and dog.  It was a pleasure to cooperate with them.  We are also grateful for the knowledge and experiences they provided us with regarding how foreigners can succeed with buying a home in Norway.  Experience we hope that other new customers will benefit from.

 

 

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