Strong rise in house prices in January
House prices rose by 3.3 per cent in January. Adjusted for seasonal variations, prices rose by 0.9 per cent.
Home prices are now 3.2 per cent higher than a year ago.
- Housing prices rose as normal in January, but the increase is stronger in many more areas than usual, especially in Agder and Rogaland and in Eastern part of Norway. The so-called January effect in the housing market corrects the normally weaker development in December.
- In the Oslo, the upturn in January comes at the peak of a strong December and at the same time the supply of used housing is lower than at the same time in 2018 and 2019. This gives reason to be aware of the situation here, especially for the municipality of Oslo, which is a market regulator through how much and what they regulate of housing, says CEO Henning Lauridsen in Real Estate Norway.
In January, 7,375 homes were sold in Norway, which is 1.7 per cent more than in the corresponding month in 2019.
In January, 7,209 homes were put up for sale in Norway, which is 3.9 per cent more than in the same month in 2019.
- The growth in the number of homes sold and the number of new homes in the market continues after the record years 2018 and 2019, and more homes have been sold and put out than in January 2019. This indicates a good balance market that is perceived as safe for consumers, says Lauridsen.
It took an average of 67 days to sell a home in January 2020. That is down from 71 days in December. Oslo had the fastest sales time with 32 days and the slowest sales time had Kristiansand with 100 days.
- The turnover time is stable and in line with 2018 and 2019. This is naturally given the larger supply in the housing market we have had in recent years, says Lauridsen.
Regional price trends
Kristiansand had the strongest seasonally adjusted price trend in January and was up 3.5 per cent. The weakest seasonally adjusted price trend was Ålesund w / surrounding area with an increase of 0.3 per cent.
Oslo had the strongest 12-month growth of 5.5 per cent, while Stavanger w / surrounding area had the weakest development in the last 12 months with an increase of 0.1 per cent.
- There has been a strong rise in both nominal and seasonally adjusted prices, especially in Agder and Rogaland. This must be seen in the context of the fall months being particularly weak here, says Lauridsen.
Oslo City Council must take the supply side seriously
- Through January, the supply of used housing has fallen in the capital. Over the past year, the City Council in Oslo has devoted much attention to the project "new roads to own housing" and a so-called third housing sector. This initiative must not pave the way for the municipality's primary task in the housing market, namely to regulate enough housing.
- It is well documented in research that there is a close relationship between housing construction, house prices and the degree of regulation. The City Council must now deliver on the 2015 legislation on adequate regulation and the conclusions of the Housing Growth Committee in 2016. As it stands now, the City Council's commitment to a third housing sector seems to weaken awareness of the municipality's main task in the housing market, concludes Henning Lauridsen, CEO of Real Estate Norway.