House prices fell by 0.1 per cent in November 2020. Adjusted for seasonal variations, prices rose by 0.8 per cent.
House prices are now 7.8 per cent higher than a year ago.
- House prices in Norway fell nominally in November, which is normal for the month. However, there are large differences in house price developments and cities such as Tromsø, Trondheim, Bodø and Oslo have had a strong development in house prices last month, says CEO Henning Lauridsen of Eiendom Norge.
- The development in the housing market in 2020 has been much stronger than most people imagined at the beginning of the year and in March / April in connection with the corona outbreak. At the end of November, the 12-month growth is 7.8 per cent, and the rise is broadly rooted throughout the country. Even Stavanger, which for many years has had a fall in house prices, will, as it stands now, see a rise in house prices in 2020.
- Norway is not alone in strong growth in both the housing market and the holiday home market in the wake of the corona pandemic. In many countries and cities around the world, the post-corona housing market has proven to be counter-cyclical. Our own home is a safe haven against the corona, and consumers have changed their consumption towards their own home, says Lauridsen.
Revenue growth continues
In November, 8,095 homes were sold in Norway, which is 13.2 per cent more than in the corresponding month in 2019. So far this year, 95,493 homes have been sold in Norway, which is 6.1 per cent more than at the same time in 2019.
In November, 6,972 homes were put up for sale in Norway, which is 3.3 per cent more than in the same month in 2019. So far this year, 98,111 homes have been put up for sale, which is 1.52 per cent less than at the same time last year.
- A record number of homes were sold last month. In November, the increase in the number of new homes on the market will also continue. If the growth in the number of sales and the number put up for sale continues, we will in 2020 be able to pass 100,000 transactions and 100,000 homes put up for sale. It will be historic, says Lauridsen.
It took an average of 46 days to sell a home in November 2020. This is a reduction from 47 days in September. Oslo had the shortest sales time with 18 days and Stavanger and the surrounding area had the longest sales time with 63 days.
- The sales time is falling slightly and the time it takes to sell a home in Norway is stable, says Lauridsen.
December could be strong for the housing market
Bodø w / Fauske had the strongest seasonally adjusted price development in November, with an increase of 1.5 per cent. Kristiansand had the weakest seasonally adjusted price development with a decrease of 0.6 per cent.
Oslo and Bodø and the surrounding area had the strongest 12-month growth with an increase of 10.4 and 10 per cent, while Stavanger and the surrounding area had the weakest development in the last 12 months with an increase of 4.2 per cent.
- Due to the infection control measures, we believe that December will be a strong month in the housing market. Normally, December is the month in the year when the fewest homes are sold in Norway. Now, on the other hand, we expect that the large activity in the second-hand housing market will continue through Christmas and well into 2021, says Lauridsen.
- What is important now is that the increased prices are followed by higher housing construction. It is estimated that 300,000 new homes will be built in Norway in the 2020s, and it is important that the homebuilders are now proven responsible and put up several new homes for sale, as well as design new homes.
- Municipalities must be aware of their responsibility as market regulators in the housing market and increase regulatory reserves. Minister of Finance Jan Tore Sanner (H) must contribute with easing of lending regulations and Minister of Housing Nikolai Astrup (H) must further strengthen the work of streamlining planning and building legislation, Lauridsen concludes.
Eiendom Norge's forecast for the housing market 2021 will be published on 22 December 2020.