– Factors that we believe will contribute to higher prices in the capital over the next two years are interest rate cuts from Norges Bank, supply-side challenges, higher nominal wage growth, population growth and other demographic factors, as stated in the report. Forecast reportR From Handelsbanken Capital Markets.
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In Oslo, economists at Handelsbanken estimate that prices will rise by 20 percent from December 2023 to December 2026 – 6.5 percent this year, 8.6 percent next year, and 4.5 percent in 2026.
This year, they believe national growth will end at 4 percent, 7.4 percent next year, and 3.4 percent in 2026.
Norges Bank presents new forecasts this week. In December last year, the central bank estimated house price growth at 1.0 percent this year, 5.1 percent next year, and 6.5 percent in 2026.
The city is expected to see the strongest rise in house prices in 2024 in Stavanger, with estimated 12-month growth of 6.7 per cent, before cooling off next year. Handelsbanken justifies this by the decline in oil investments. They also expect strong growth in Tromsø in the coming years.
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Norway's housing market has started strong in 2024, with turnover rising and the number of unsold homes falling to what is referred to as a normal level. Home prices in the country have risen 4.9 percent so far in 2024.
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