The home buying market can turn at any time

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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.

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Which neighbourhoods in Norway are safe?

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As in all other countries home buying in Norway is mainly about:

Location- location – location.

Location is a very import requirement for most home hunting people. People have some ideas about which areas are nice to live in or they have some connections to certain areas and the qualities you will find there.

But sometimes the wishes do not match with the money…
The purchase prices differ considerably according to the location and attractiveness, and some areas are regarded better than others. Because of type of houses located there, and available services, communication possibilities, number of schools and access to nature for example. But also, demographic conditions come into play.

Now I am getting closer to the main point of this article.

How safe is it to live in the different parts of the bigger cities in Norway?  Which part of the city is the safest neighbourhoods?

Many foreigners, especially people from USA and other bigger countries, are very concerned about this issue. It is of course a very important question, but most Norwegian are not so concerned about the security issue itself. They wish of course for a good living environment, but since most neighbourhoods are perfectly safe the safety issue is not so important.

We have of course some smaller social problems, for example in the outskirts of Oslo, where safety can be an issue, but they are very few.

In most places in Norway, you will be perfectly safe in your home and the neighbourhood.

Despite of this, many Norwegians have somewhat stereotypical perceptions of which areas are nice to live in and they are gladly sharing these opinions to you if you start talking about buying a home.
Please do not take it for granted that all this information is correct. Do your own research, and if possible, visit the different areas to look for yourself.

If you need some advice about where you can afford to buy a property and objective information of different neighbourhoods, please ask me.

I will give you the information to you for free. And I promise to be completely honest!

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How to buy a house in rural parts of Norway

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Norway is a beautiful country, no doubt about that.   Many foreigners have a dream about buying a house in a rural area in Norway.  On the countryside, by the fjord or ocean and maybe also north of the polar circle.

I have had several inquiries about this and been able to help some of them to fulfil their dream.

However, there are some obstacles, that makes this a little bit more difficult than buying a home or cottage in  densely populated areas.

First of all, the market are a little bit limited.

Many rural homes, especially the less expensive one, are not put on the market very often.  Relatives, that inherit these properties, tend to keep them for themselves.  To use them for holiday purpose or Airbnb for tourists.  This is especially common in the North of Norway.  Some places it is difficult even for young people who want to stay in their home community or move to a small village to buy a house for their family.

The same problem applies for small farms.  It is seldom for sale.  The family keeps them, or they are merged with other bigger farms nearby.

Also many Norwegian are dreaming of buying a small farm, but they tend to wish for objects that are near a city or bigger village.  This increase the demand and the sales prices are quite high.

Even if the market is a bit limited, there are still homes for sale.

But it is important to be aware of some Laws and Regulation that can be connected to these properties.

  • Obligation to live rule. Boplikt
    Municipalities can implement rules these rules. You cannot leave the house empty. You must either live there yourself the whole or part of the year and rent it out for the rest of the year. This is a policy to prevent the creation of ghost towns.
  • Duty to get official permission for owning the house – Konsesjon
    This is very common for agricultural properties. There may be a duty to run agricultural activities.  It is the buyer’s responsibilities to get these permissions after the purchase. It is also a possibility to subcontract the land. But you will never know if this is possible before you are applying for permission to own the property.

The realtor will inform about conditions for the sale in the sales material. It is very important to check out these things very carefully.   I will strongly advise you to seek help from an consultant like me before you give a bi on  a rural property.

Remember – the bid is binding in Norway!

Download my booklet about home buying in Norway

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Interesting news about the housing market in Norway

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This September we have seen quite significant changes in the home buying market in Norway.

Therefore I have to write about the market and housing prices – AGAIN.

Hope you are OK with it.

After all, to keep oneself updated on the market is a big factor for achieving a successful purchase!

Two important factors implicate a development towards a buyers’ market this autumn:

  • Decrease in prices with 2,2 % in Oslo – 2,5% in september
  • More houses up for sale in september – 17% more than last year

Falling prices are expected for the rest of the year and probably also in 2023.  Then it will start to increase again according to the forecasts. The sales volume is now back on pre pandemic level.

The reason for the decrease in  prices is obviously the increased mortgage interest and increase in prices on electricity and other living costs.

A buyers’ market is good news if you are buying a home in Norway for the first time.

If you already have a property to sell and want to buy a new one, and your mix of equity of mortgage is comfortable, there is no reason why you should not buy a new home now, if you feel it is needed.

Just remember the rule – Sell and buy in the same market

Timing is everything

Download my booklet about home buying in Norway for free here

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