– Hurry! – E24

Estate agents are anticipating full speed on the market following Norges Bank signals on interest rate cuts and house price growth.

As expected, the Norwegian Central Bank kept the interest rate unchanged at 4.5 percent last Thursday. The central bank now expects the first interest rate cut of the year, likely in September.

Predictability trumps high interest rates, says Heida K. Ulfnes, head of the Eie eiendomsmegling.

She believes there will be more momentum in the housing market in the future.

– Too late in 2025

In December, Norges Bank predicted house prices would rise by one percent this year.

this week Modified The central bank expected price growth of 2.9 percent.

In 2025, the central bank expects prices to rise by 6.2 percent, and in 2026, house prices are expected to grow by 7.7 percent.

“House prices fell last fall, but have seen strong development so far this year. We expect this development to continue in the near future,” Norges Bank wrote in its first monetary policy report of the year.

“In the longer term, we expect lower housing construction and gradual declines in interest rates to contribute to a further rise in house prices.”

-If you're unsure as a first-time buyer, will it be “now or never”?

– Yes, get the window now, if you have the chance. It's too late in 2025. By then, prices have risen too much, says Privatmegleren CEO Greth Wittenberg-Meyer.

– The timing is right for home buyers

Heda K says: Ulfennes, president of Eie eiendomsmegling, said the housing market last year was characterized by discussions about interest rate increases. The effect of this was that home buyers remained on the sidelines and the market calmed down sharply.

At the December interest rate meeting on the eve of last year, people started talking seriously about reaching the interest rate peak.

Then the dynamic changed, Olvenes says.

The new dynamics were embodied in the house price figures released by Eiendom Norge: in January and February, seasonally adjusted house prices came in slightly above the central bank's expectations.

On Thursday, Central Bank Governor Ida Welden Bache concluded the following:

The interest rate path we are presenting today suggests that the interest rate will remain calm until the fall, and that it will be cut for the first time in the fall – most likely in September.

Ulvness believes that the market will respond to this statement.

– I think more people, based on the interest rate meeting on Thursday, will move into the housing market. After Easter comes the spring release, so the timing is good for homebuyers.

– The train is leaving now

Already this week, more activity has been observed at offers and in bidding rounds, says Mayer in Privatmegleren.

– Although prices have been rising recently, volume has been low and many have been on the fence. “I think we're going to see a lot of volume and activity over the summer,” Mayer says.

Finally, she adds a plea to new founders who have been on the fence:

– If you have the chance, hurry!

– Certain uncertainty

Norwegian Home Builders Association (NBBL) Chief Economist Hilde Medsim is not urging first-time buyers to rush out to buy.

– What is important is how house prices grow relative to household income, says Medsim.

However, she does not think it will be easier to enter the Oslo housing market in the coming years.

– I do not think that we will see any decline in housing prices in the coming months. I was surprised by the increase in January and February. “As we get closer to lowering interest rates, I think house prices will continue to rise,” Medsim says.

– But there is some uncertainty about the future market situation: inflation remains high and interest rates are at a much higher level than they have been for a long time.

-It won't get any easier

NBBL has developed something they call the “First Home Index”. It shows how many homes around Oslo are on the market that a typical first-time buyer could afford.

– In 2010, the average first-time buyer could afford 40 percent of the homes on the market in Norway. Medsim says the figure for Oslo municipality last year was 3 percent.

– It will not get easier in the coming years with today's lower level of construction.