House prices rose by 0.5 per cent in October 2020. Adjusted for seasonal variations, prices rose by 1.1 per cent.
House prices are now 7.1 per cent higher than a year ago.
- House prices continue to rise in October, which is abnormal for this time of year. If this trend continues throughout the year, the seasonal pattern in the Norwegian housing market with rising prices in the first half of the year and falling prices in the second half of the year will be broken, says Henning Lauridsen, CEO of Eiendom Norge.
- The measures against the corona pandemic in combination with the zero interest rate have made the demand for housing in Norway much stronger. This is visible both in the price development, the number of sales and the sales period. And Norway is not alone in such a trend. In many cities and countries around the world you see the same trend. Our own home is a safe haven against the corona, says Lauridsen.
Revenue growth continues
In October, 10,045 homes were sold in Norway, which is 9.4 per cent more than in the corresponding month in 2019. So far this year, 87,493 homes have been sold in Norway, which is 5.5 per cent more than at the same time in 2019.
In October, 10,017 homes were put up for sale in Norway, which is 1.2 per cent more than in the same month in 2019. So far this year, 91,611 homes have been put up for sale, which is 1.92 per cent less than at the same time last year.
- A record number of homes were sold last month, similar to the months after the most stringent corona measures were repealed. In October, the number of new homes on the market will also increase, as in September, says Lauridsen.
It took an average of 46 days to sell a home in October 2020. This is a reduction from 48 days in September. Oslo had the shortest sales time with 21 days and Kristiansand had the longest sales time with 66 days.
- The sales period falls slightly from September and the time it takes to sell a home in Norway is still stable, says Lauridsen.
More moderate price development going forward
Romerike had the strongest seasonally adjusted price development in October, with an increase of 1.7 per cent. The weakest seasonally adjusted price development had Ålesund w / surroundings and Tromsø with unchanged prices.
Oslo had the strongest 12-month growth with an increase of 9.5 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.
- As it looks now, house price developments in 2020 will be stronger than most predicted both at the beginning of the year and in the wake of the corona pandemic in March and April, Lauridsen says.
- What in Eiendom Norge's view 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 for putting out several new projects for sale, as well as designing new projects.
- The municipalities, for their part, must be aware of their responsibility as market regulators in the housing market and increase their regulatory reserves. Minister of Finance Jan Tore Sanner (H) must contribute with easing of the mortgage regulations and Minister of Housing Nikolai Astrup (H) must further strengthen the work of streamlining planning and building legislation, Lauridsen concludes.