The newspaper onlineInterest rates have risen, and all indications are that they will continue to rise. At the same time, almost everything becomes more expensive.
Also read: Waiting for two rate hikes after Norges bank survey
However, the desire to pay more for housing has never been greater. Home prices have risen 7.7 percent so far this year.
But now the fear of the worst housing market is beginning to be felt.
– Especially in big cities, price increases in the housing market were surprisingly high in the first half of the year, at the same time the market was noticeably heavier outside the cities and in rural areas. In line with more and more rate hikes announced, we are now seeing clear signs that expectations are growing that there will be a correction in the housing market. Therefore, we are not surprised that more people are now showing more caution when they change homes, DNB Eiendom CEO Renate Sørestrand-Hanssen tells Nettavisen.
Afraid of being stuck in two houses
In a new survey conducted by Kantar for DNB Eiendom, it appears that many people are now more concerned about buying a new home than selling their old one.
According to DNB Eiendom, it largely has to do with the fear of ‘being left behind’ with two houses and the costs that result.
Historically, just under half of homebuyers have said they want to buy before selling. Numbers now show that only 23 percent clearly want to buy first.
Fear of buying first is lowest in Oslo, Vikken and Westland – while very few plan to buy a home first in Agder.
– When we break the numbers down into local areas, the differences between big cities and rural areas become more apparent. If we look at Trøndelag without Trondheim, and in Northern Norway without Tromsø, there are many more who have stated they would sell their homes before buying than the two cities, DNB.
Supply is greater than demand
This fear is not entirely unfounded:
– Recently we have seen that there are many more homes being advertised than being sold. DNB says it’s been many years since we’ve seen such a clear trend.
The result is that the number of unsold homes is increasing.
Whether this is because more people are listing their homes first, before they start looking for a home themselves – or whether it could indicate a further slowdown in housing demand is not clear.
The seller does not necessarily have plans to buy. Some move from one place to another. Some families move in together, others split up. And not least, a lot of new stuff is still being built.
The DNB chief’s advice is clear:
My advice to those planning to sell is to contact your local broker and check how active the market you are selling in is. Turnaround time, number of transactions, most popular homes, and price trends are important indicators of whether the seller can expect to sell the home quickly and what price you can expect to achieve, she says.
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