Moderate development in housing prices in June
The housing prices fell by 0.2 per cent in June. Adjusted for seasonal variations, prices rose by 0.2 per cent.
House prices are now 10.1 per cent higher than a year ago.
- House prices in Norway developed moderately in June, which is normal for the month. As it looks now, the peak in house prices was reached in March after the strong rise from the summer of 2020.
- When Norges Bank has now clearly announced the first interest rate increase in September, we expect moderate developments in house prices going forward, says CEO of Eiendom Norge, Henning Lauridsen.
- As in previous months, the growth in the number of sales continues, and the growth in both the number of new homes on the market and the number sold is far above previous years. At the same time, sales time is falling sharply to its lowest level in the last five years. This shows that the demand for housing in Norway is very strong at the moment, says Lauridsen.
Record sales in the first half
In June, 11,698 homes were sold in Norway, which is 5.5 per cent more than in the corresponding month in 2020.
In the first half of 2021, 55,932 homes were sold in Norway, which is 13.2 per cent more than in the same period in 2020.
In June, 11,848 homes were put up for sale in Norway, which is 7.9 per cent more than in the same month in 2020.
In the first half of 2021, 58,909 homes were put up for sale in Norway, which is 8.4 per cent more than in the same period in 2020.
- We believe that the strong demand for housing in Norway will persist and that the pandemic has led to a lasting shift in the housing market. With the opening of society, we believe that we will first from the autumn see the real corona effects in working life with increased flexibility. We believe that a flexible workplace will be a lasting one for many and that this will have a long-term significance for the housing need, says Lauridsen.
It took an average of 29 days to sell a home in June 2021, down from 34 days in May. The shortest sales time was Drammen w / surroundings with 15 days and the longest sales time was Ålesund w / surroundings with 36 days.
Bodø w / Fauske had the strongest seasonally adjusted price development in June, with an increase of 1.6 per cent. Hamar w / Stange had the weakest seasonally adjusted price development with a decrease of 1.4 per cent.
Bodø / m Fauske had the strongest development in the last 12 months, with an increase of 15.8 per cent. Ålesund and surroundings had the weakest development in the last 12 months with an increase of 6.9 percent.
- In June, Bodø w / Fauske had the strongest development in the country. In the places, Kristiansand and Stavanger w / surroundings follow, which for the first time in many years has a strong development in house prices, says Lauridsen.
Insecure housing market from New Year
On 8 June, Minister of Housing Nikolai Astrup (H) laid down the regulations that are to regulate housing assessment in the Norwegian housing market.
The regulations will enter into force on 1 January 2022 at the same time as the controversial amendments to the Disposal Act passed by the Storting in May 2019.
- Astrup is gambling with the Norwegian housing model, because the home seller can not get all the responsibility in the housing trade without the appraisal industry being held accountable and given competence requirements, says Lauridsen.
- This legislation annually regulates well over 100,000 transactions in the housing market, and will have major consequences for Norwegian consumers with increased costs, increased risk and increased insecurity, if valuation is not properly regulated.
- Astrup and the government must amend the regulations and follow up the Storting's decision to set responsibilities and competence requirements for the tariff industry, as well as postpone the entry into force, says Lauridsen.
- If Astrup does not do the job, the Labor Party, the Center Party and SV must clean up if they come into government after the parliamentary election, Lauridsen concludes.
Eiendom Norge today also publishes our regional reports for the second quarter with an overview of house price developments in 98 Norwegian municipalities and districts.