House prices rose by 0.2 per cent in April. Adjusted for seasonal variations, prices fell by 0.1 per cent.
House prices are now 12.2 per cent higher than a year ago.
- House prices developed weaker in April than normal for the month. The exception is Kristiansand and Stavanger, where prices rose sharply. Nationally, both the 12-month growth and the seasonally adjusted price development fall for the first time since April 2020.
- Through April, both sales of second-hand homes and the number of new homes on the market have grown sharply, and never before have so many homes been sold in Norway after the first four months of the year.
- We expect weaker price developments in the months ahead, and the shift in price developments that many have announced is here now. This is not surprising in light of the fact that Norges Banks has announced the first interest rate increase this autumn, the sharp rise in house prices over the past year and the large growth in the number of new homes on the market, says CEO of Eiendom Norge, Henning Lauridsen.
Strong revenue growth and larger offers
In April, 8,761 homes were sold in Norway, which is 24.5 per cent more than in the corresponding month in 2020.
So far this year, 32,821 homes have been sold in Norway, which is 16 per cent more than in the same period in 2020.
In April, 9,846 homes were put up for sale in Norway, which is 15.5 per cent more than in the same month in 2020.
So far this year, 34,082 homes have been put up in Norway, which is 6.3 per cent more than in the same period in 2020.
- In April, significantly more homes were sold than in the same month last year. It is related to the corona pandemic that broke out in March last year, and which had a major impact on turnover in the housing market in March and April 2020. At the end of April, we are also well above 2019, which was the previous record year measured in turnover, says Lauridsen.
- We expect that the turnover volume will continue to be high in the future, which is also normal for May and June, he says.
It took an average of 39 days to sell a home in April 2021, down from 43 days in March. Oslo had the shortest sales time with 15 days and Ålesund and the surrounding area had the longest sales time with 75 days.
Healthy with reduced price growth
Kristiansand had the strongest seasonally adjusted price development in March, with an increase of 2 per cent. Ålesund w / Omegn had the weakest seasonally adjusted price development with a decrease of 0.9 per cent.
Oslo had the strongest development in the last 12 months, with an increase of 15.7 per cent. Tromsø had the weakest development in the last 12 months with an increase of 7.3 percent.
- It is healthy for the Norwegian economy and financial stability that house price growth is now curbed. With increased housing construction in the next few years and higher interest rates, it is likely that we will now enter a longer period of moderate price development in the housing market, such as in 2018 and 2019, Lauridsen says.
- Moderate price growth with a large supply provides greater stability for exchanging homes and for first-time buyers, and is positive for all parties in the housing market. As it looks now, the housing market is in favor of a soft landing, Lauridsen concludes.