Home prices rise in February: Tired of losing auction rounds

Home prices rise in February: Tired of losing auction rounds

After a four-month intensive hunt, Uzma Shafi (27)’s dream home came true in February.

– I still can’t believe that I bought a house. It was very big and beautiful just like I thought,” says Shafi.

The chaos of moving is total, because already on Monday, Sahfi moves into his first own apartment together with his four-year-old son. However, there is a demand to build a road there.

Moving chaos: On Monday, Uzma Shafie moved into her new three-room apartment in Stovnar. Photo: Od Arne Hartviksen / TV2

He bought a house

– I bought it. I contacted the seller directly and submitted an offer, says Shafi.

After countless failed bids, Shafi grew impatient. She found that those who were two were often overrepresented.

– I read a bit online that sometimes you can buy houses, but I’ve been through several bidding rounds and a couple won me over. “Since I’m buying alone, I thought I’d give it a try,” says Shafi.

The mother of one works as an aide in a primary school and has a part-time job in addition. He had been saving for four years, but still needed Husbanken’s help to break into the hot market in Oslo.

– Would you go out of town to do it on the cheap?

– I thought about it, but my son has kindergarten here, so I work in Oslo. We also have family, his dad lives in Oslo. That’s why I thought it was better to live near everyone, says Shafi.

raises prices

In February, house prices rose 1.5 percent, the figures said Property Norway.

– It seems very strange when interest rates increase and house prices rise at the same time, says Hennik Lauridsen, CEO of Eiendom Norge.

OPP: On Friday, Henning Lauridsen, the managing director of Eiendom Norge, was again able to project growth in house prices.  Photo: Kristin Grønning / TV 2

OPP: On Friday, Henning Lauridsen, the managing director of Eiendom Norge, was again able to project growth in house prices. Photo: Kristin Grønning / TV 2

Interest rates rose to a record 2.75 percent, and Norges Bank announced another rate hike in March. Lauritzen also believes interest rates will be raised again in June, to 3.25 percent.

– There aren’t many homes for sale yet, and that could help push prices up a bit, Lauridsen says.

Also, he believes that relaxations in lending regulations are helping to boost house prices. From January 1, new borrowers will have to bear a three percentage point interest rate hike. Earlier, they had to bear an increase of five percentage points.

It turns out

Grethe Meier, president of Eiendom Norge and managing director of Privatmegleren, is not surprised by the development.

– We have seen a lot of traffic and good activity in the housing market, so we expected a price increase even before the figures came out today, says the mayor.

Expected: PrivateMcLaren CEO Gareth Meyer was not surprised by the development.  Photo: Kristin Grønning / TV 2

Expected: PrivateMcLaren CEO Gareth Meyer was not surprised by the development. Photo: Kristin Grønning / TV 2

People selling their homes are selling faster than they were a few months ago, says Randy Marjama at Nordea.

– Among those who didn’t sell at the expected price, Marjama says, there are many people who want to rent out the house to take advantage of a good rental market.

But Lauridsen, Meier and Marjamaa both believe that the market will be more sluggish in the future.

Hot market: There are more people looking to rent a home, says Randy Marjama, Nordea's head of individual markets.  Photo: Magnus Nøkland / TV 2

Hot market: There are more people looking to rent a home, says Randy Marjama, Nordea’s head of individual markets. Photo: Magnus Nøkland / TV 2

– With inflation still high, further interest rate hikes are expected throughout the year, and we believe this will put a damper on the housing market going forward, says Marjama.

Low costs

Shafi, who bought the house, ended up paying NOK 100,000 over the asking price.

Despite this, the monthly expenses actually decrease as she moves from renting to owning.

– Afraid you’ve overpaid?

– No, not really. Many people interested in the house wanted to make higher offers, says Shafie.

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Joshi Akinjide

Joshi Akinjide

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