We find ourselves already halfway through January, with the country covered in snow and experiencing proper winter temperatures. Real estate sales are in full swing, and I’d like to share some insights I’ve gathered so far.
It seems that the housing market has gained new momentum compared to the fall. Buyers are showing greater interest, and I have even experienced bidding rounds on several of the properties my clients are interested in. Real estate agents also report increasing activity, and although they sometimes tend to be overly optimistic, there seems to be a good amount of truth in their observations.
January traditionally sees a boost in real estate market activity. Additionally, we have reached the peak of the interest rate curve, and a decrease in interest rates is expected at the next change by the Norges Bank. When in 2024 this will happen is still unclear, but it at least provides potential homebuyers with predictability when planning their home purchase.
Throughout last fall, I spoke about being in a buyer’s market. There was a good supply of homes, low demand, cautious buyers, and falling prices. Despite this, the sales volume fell due to economic uncertainty. I am very uncertain about whether this strong buyer’s market will persist, but at the same time, some of the uncertainty factors have been cleared away.
Regardless, my advice is not to wait too long for your home purchase. We expect the market to turn around in 2024, but the timing is uncertain. Experience shows that changes happen quickly when they do occur, so it might be wise to start your home search early in the year.
We need to wait for the January figures to have a clearer understanding of the market direction, but these are my best assessments so far.
I wish you a continued fantastic start to the year. Feel free to contact me for a non-binding digital meeting regarding your home purchase. Together, we can plan a strategy to make the most of the market.