House prices in Oslo fell 0.8 percent unchecked in September, but according to seasonal variations, house prices rose 0.2 percent, according to house price figures released by Indom Norge on Tuesday.
Nejra Masic, chief economist at the Forecast Center, believes the market has calmed down after a happy second half of 2020 and the first two months of this year.
In the capital, house prices have risen sharply due to the epidemic, but initial prices peaked in February. Then House prices fell for five consecutive monthsBefore a slight increase in August. In September, prices fell again.
Despite the expected rise in interest rates in September, Masik believes it has eased inflation, especially in Oslo.
Property Norway Home Price Statistics, September 2021
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– The next interest rate hike will most likely come in December, and will be higher in the coming years. This will lead to more moderate price growth in the housing market over the next two years than we saw after the interest rate cut in the spring of 2020.
He points out that the housing market in Norway and Oslo was in a moderate three-year period until the outbreak began.
– I think in the future we will get that three year period back – if not for another negative shock that will cut the interest rate path.
Increased by 7.2 percent
The price of a 12-month home in Oslo is now 7.2 percent, according to Indom Norg.
The strongest seasonal adjusted price growth in September was in Bode with Fosca, where prices rose 1.1 percent. In Christianity, adjusted prices for seasonal variations rose 1.0 percent.
In Bodo with Fosca, 12-month growth was 14.7 percent in September.
CEO, Carl Kewing of the Norwegian Real Estate Association. (Photo: Skjalg Bøhmer Vold)
It is interesting to note that Christianand has a strong twelve-month growth of big cities, but Oslo is very weak. There are many explanations for this, but Carl O’Brien, CEO of the Norwegian Real Estate Association, said that Oslo started the amendment earlier than other cities. Says Kewing
He believes the market will remain calm at the end of the epidemic, despite high activity on a national basis.
It gradually grows from seller to buyer’s market. Sellers need to lower their price expectations forward.
Carrie Dew Anderson, chief economist at Axars Item, said it was not unnatural that price growth in Oslo was lower this year than elsewhere, as house prices in Oslo rose nationally last year.
However, the relationship between supply and demand for secondary housing in Oslo may have led to strong housing price growth in recent months, Anderson says, with both August and September rising in terms of seasonally adjusted prices.
– The relocation process will be quiet as the community reopens
Regional relocation from the third quarter of last year was negative for the capital. That is, people fled the big city during epidemics.
– As we live normally now, it will be exciting to see if these migration flows will eventually go upside down. As such, it could help revive housing price growth in Oslo, says Du-Andresson.
According to Gary Du Anderson, chief economist at Akershus Eiendom, it is not unnatural for price growth to be lower in Oslo this year than elsewhere, as house prices in Oslo have risen nationally over the past year. (Photo: To Trana)
Each quarter, the Forecast Center publishes its Future Life Survey. In a recent survey, 20 percent respond that the corona situation has accelerated their relocation plans.
– As the community reopens, this may be a sign that housing demand and relocation activity will calm down. Consumption of services such as overseas travel, cultural life and restaurants competes for the time and money of Norwegians, after the housing market has been monopolized for nearly a year and a half, says Masik.
He points out that higher electricity prices, petrol prices and increased interest costs will reduce household budgets in the future.
– It will make the total cash role for the people a little smaller, so give it some way in the future, he says. (Terms)Copyright Dagens Næringsliv AS and / or our suppliers. We would like you to share our cases using the link that leads directly to our pages. Copying all or part of the Content or any other use may only take place with written permission or as permitted by law. For additional terms Check it out here.
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