House prices rose by 1,2% in March. Looking back at the last 12 months, house prices are now at the same level as a year ago.
This means that the housing price fall in the autumn of 2022 has been “eaten up”.
For home buyers the supply of homes for sale is important, combined with demand from buyers. There are fewer homes listed for sale than last year, and there are slightly fewer unsold objects at the end om March than it was earlier this year. After the Easter Holiday, now in April it seem like the lack of homes put up for sale continues.
Usually there is a spring flow of homes for sale after Easter holiday, but so far it has not occured.
Prices could continue to raise if the lack of homes on the market continues. However mos experts believe that we will see a decline in prices forwards. We have not yet seen the top of the interest rates!
The market is still somewhat clmer than other periods of rising prices, sales take a little bit longer time. That is an advantage for the buyers. But be aware that the market is selective. If you go for the most attractive objects, you will experience tough bidding rounds where you have to stretch your rope or risking not to reach out in the competition.
If you want to have an non-binding talk or digital meeting about the market or your possibilities on the market, please do not hesitate to contact me.
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The economy in Norway, as in a lot of other countries, are in a strange situation right now. We experience all time soaring prices in food and energy prices. At the same time, we must cool down the economy by raising the mortgage interests. So far this has not affected the prices of homes very much. August had rising prices in most part of the countries, in average they increased with 1,9%. The number of homes for sale the market has increased in august and will continue to increase. This is good news for the buyers, because lack of homes for sale usually means that the bids increase to very high levels. As you probably know we are practising open bidding rounds according to the auction principle in Norway.
It is expected that the home prices will decrease this fall when people feel the effect of interest rate effects. And the banks’ lending policy will change according to higher interest rates. They are obliged to stress test that the customer can manage a 5% increase of interest. That means that people will get less money for their home buying and the bidding rounds will become much cooler.
Norwegian Home buyers are financing their home buying in all essentials by bank mortgages. Read more about home buying financing in Norway here.
Big drop in the sale of cottages.
Norwegian people are crazy about cottages or “hytta” as we called it. Many people even have two cottages, me included. If you do not own one yourself, you may have access to one through your family. During the pandemic, the cottage sales were extremely high, both in volume and price. Now the sale has dropped by 45% – in volume. But not yet in price. But at some point, close to now, I think we will see a drop in prices too. So, if you are planning to buy a cottage in Norway this fall will be a good opportunity. And please ask me for help. The buying process is the same as for homes and there I am an expert. And as a cottage lover and user I have a good pulse on the holiday home market.
Sorry about all the economic talk in this blog. But in Norway the housing market is so depended on the economy in general. It will serve you well to follow to keep yourself updated on the market.
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And I will do what I can do keep you in the loop here on the blog!