Rise in prices and record sales in the housing market in July
House prices rose by 0.4 per cent in July 2020. Adjusted for seasonal variations, prices rose by 0.9 per cent.
House prices are now 5 percent higher than a year ago.
- In July, almost 45 per cent more second-hand homes were sold than in July 2019. A record number of Norwegians have spent the summer buying housing, and the fall in turnover in the housing market in the wake of the corona outbreak in March and April has more than recovered by the end of July. , says CEO Henning Lauridsen of Eiendom Norge.
- Prices developed strongly nationally and in most areas in Norway. In central Eastern Norway and in Bergen, price developments were more moderate in July with a negative development in seasonally adjusted prices.
- It is likely that much of the stimulus of the zero interest rate has now been priced into the housing market, and we expect house prices to develop more moderately in the future, which is also normal in the second half of the year, Lauridsen says.
In July, 6,821 homes were sold in Norway, which is 44.7 per cent more than in the corresponding month in 2019. So far this year, 56,196 homes were sold in Norway, which is 2.3 per cent more than at the same time in 2019.
In July, 4,672 homes were put up for sale in Norway, which is 46.1 per cent more than in the same month in 2019. So far this year, 59,045 homes have been put up for sale, which is 1.9 per cent less than at the same time last year.
- There were both sold and put out significantly more homes in July this year than in 2019. Accumulated, so many homes have never been sold in Norway at the end of a month in July, Lauridsen says.
It took an average of 67 days to sell a home in July 2020. This is an increase from 50 days in June. Oslo had the fastest sales time with 33 days and Stavanger had the slowest sales time with the surrounding area with 101 days.
- The sales period is stable and at a somewhat higher level than in previous years. The rising sales time indicates that many homes that have been around for a long time have been sold last month, says Lauridsen.
More moderate price development in the future
Kristiansand, Tønsberg w / Færder and Porsgrunn / Skien had the strongest seasonally adjusted price development in July, with an increase of 2.4 per cent. Follo had the weakest seasonally adjusted price development with a decrease of 0.2 per cent.
Hamar w / Stange had the strongest 12-month growth with an increase of 8.3 per cent, while Stavanger w / environs had the weakest development in the last 12 months with an increase of 2 per cent.
- Developments in the housing market in recent months have been very strong, and July was no exception. But July was somewhat weaker than many had expected, especially in the metropolitan area and Bergen. This is good news because the already highly priced housing market in central Eastern Norway does not need strong price growth, but increased supply of new homes, says Lauridsen.
- The interest rate is the nuclear button in the housing market, and we believe the effect of the zero interest rate has now been taken out. We expect price developments to be more moderate in the future and that the weaker development in the Norwegian and global economy will now have a greater effect in the housing market as well. At the same time, it is likely that household consumption will to a greater extent be directed towards their own homes as the corona pandemic is probably still in an early phase. The home is a safe haven against the corona, Lauridsen concludes.