A record number of homes were put up for sale at the end of August. After the fall, we will move more towards the buyer’s market, thinks Grethe Meier of Privatmegleren.
Last week, an annual record for the number of homes advertised was set on Finn.no. Grethe Meier, managing director of Privatmegleren, believes we are facing a change in the pace of the housing market.
August was the first month we had more incoming assignments than 2021, which was a record year. It’s very surprising, says Meyer, that the size is so large.
Meyer believes that a larger supply will lead the housing market away from being a seller-only market.
The award ceremony is over. I think we will move more into the buyer’s market towards the end of the year. There are a lot of homes for sale now. We think this will create greater predictability for the buyer and seller, she says.
August sales are very strong
So far this year, house prices in Norway are up 7.1 percent. On Monday, Eiendom Norge presents its home price statistics for August. Mayer believes that prices rose in August, but not as much in August due to the fact that there are more homes on the market.
“I think we’ll see very strong sales in August for the whole industry, at least on par with 2021, which was a record year,” she says.
In July, 20 percent fewer homes were sold than in the same month in 2021 — the lowest number in five years. So far this year, 11.6 percent fewer homes have been sold than last year.
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This makes the mortgage more expensive
– obvious change
Sol Vilde Andreassen, real estate agent and partner at Eie Frogner & Aker Brygge, had more than 20 potential buyers on display for his 40-square-meter apartment on the 11th floor of his Twin in Oslo this Tuesday. The brokerage says it has noticed a change in the housing market after the summer.
– In recent weeks, attendance at shows has been very uneven. She says this makes it even more important to have a good view of the house.
– From the beginning of the year until the summer, it was largely a seller’s market. We have noticed a clear change recently, with more homes on the market. And Andreessen believes that this will lead to prices remaining more stable, and to a large extent becoming a buyer’s market throughout the fall and winter.
Owning broker thinks it will be good for the market with a ‘small correction’. So far this year, housing prices have
– Prices cannot continue to increase by 10-15% year after year. It also hopes it will make it easier for first-time buyers to enter the housing market, she says.
Couple Magnus Carlsen and Luisa Guerra were among the people who found their way to the tween on Tuesday.
– We rent together today, and now we have plans to buy our first apartment together. This is the first check we do. We loved the view, Karlsen says, and are happy in the vicinity.
Marietta, 33, moved into her home to save on equity — she should be happy about the increased interest, says economist
Living in their own world
Although the market is in the process of normalizing, Grethe Meier in Privatmegleren was surprised by the significant activity in the housing market.
The housing market lives in its own world during the day. I couldn’t predict that there would be a lot of homes for sale now, given the high interest rates and the sharp rise in prices. Despite the fact that our purchasing power has declined significantly, we continue to prioritize investment in housing, says Mayer.
We’ve heard over and over again that “the housing market is now going to take a beating.” Instead, prices and activity continued to increase. She adds that it is very amazing.
On August 18, the Norges Bank raised its key interest rate by 0.5 percentage point to 1.75 percent. The central bank has already announced a new rate hike at its September 22 interest rate meeting. At the same time, price growth was the highest since the end of the 1980s and electricity prices are very high.
– One might think that this would lead to more people being “sold”. This is not what it is. Instead, we see that people prefer buying more expensive homes. She says that most people seem very intent on a higher interest rate and are willing to change their consumption.
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