Housing and interest | Desperate: -⁠ There is not a single customer there

Housing and interest |  Desperate: -⁠ There is not a single customer there

(Endre Akershus Magazine): Since the beginning of the 1990s, Roger Carlsen from Björkelangen has developed, built and sold a large number of houses in Ørskog Holland, Gann and other places in the peripheral areas around Oslo.

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Carlsen, managing director and major shareholder of TBA Gruppen AS based in Skidsmokorset, has been through crises before, but this time they may be worse than ever. The market is completely dead.

This is what Carlsen says in an interview with Today's business (Status for subscribers).

– Carlsen adds: – There is no single client Distinctive name.

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It may not be sold

The new housing market crisis comes as a result of the statements of Central Bank Governor Ida Wolden Patches 13 interest rate increases since December 2021. Although most economists expected interest rates to stop in December, the Norwegian Central Bank chose to raise them by another 0.25 percentage points.

– If people are not confident that the interest rate will not rise further, this could go to hell, Carlsen told DN.

– There were also periods before when it was quiet and there were no buyers, but then the market came back relatively quickly, he says.

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These days, Carlsen and his company are working on completing one of a total of seven detached homes in an area near Strommen's football stadium. The house is the fifth to be built, the first two having been sold two years ago. The last temporary home is not yet sold.

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-We look at our costs and think about what we can cut, but we feel we have a responsibility to keep carpenters, joiners and plumbers alive. We know that the market will wake up again at some point, but right now there is a heavy burden to carry on the shoulders. We feel it on our bodies,” Carlsen tells the newspaper.

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The real estate company employs about 20-30 people at any given time.

– If you want craftsmen to be with you in the good times, you have to stand by them in the bad times as well. The fact that the market has been stuck for this long now makes the next recovery period otherwise uncertain. Carlsen asks: How many craftsmen do we have, and how much will it cost them?

TBA Prosjekt's accounts for 2022 show a negative operating profit of NOK 14 million as a result of “increasing costs of materials, services and prolonged municipal operations,” according to Carlsen, and a negative pre-tax profit of nearly NOK 31 million, the distinguished name wrote.

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You could fall more

Director Harald Hansen In the new home sales department at DNB Eiendom, the biggest barrier to new home sales is the fear of rising interest rates.

– High interest rates and increased cost of living. In addition, it will be impossible to ascertain the price at which a house can be sold, and people who want to buy a new home do not know what capital they can take with them in accounts with the bank, he tells DN.

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NBBL Chief Economist Hilde Caroline Medsim says she wouldn't be surprised if housing starts decline further in the coming months.

– In this case, we will be able to get closer to the starting level in 2024 with a little less than half of a normal year. At the same time, population growth is the highest in ten years, indicating the opposite Today's business.

Dalila Awolowo

Dalila Awolowo

"Explorer. Unapologetic entrepreneur. Alcohol fanatic. Certified writer. Wannabe tv evangelist. Twitter fanatic. Student. Web scholar. Travel buff."

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