
No fall in the housing market yet
House prices fell by 0.6 per cent in September 2024. Adjusted for seasonal variations, house prices rose by 0.4 per cent.
So far in 2024, housing prices in Norway have risen by 7.6 per cent.
The average price for a home in Norway was NOK 4,795,936 at the end of September.
- House prices fell by 0.6 per cent in September, which produced a strong seasonally adjusted increase of 0.4 per cent. It is normal for house prices to fall a little in the autumn and the fall now in September is more similar to what we have seen historically in September than what we have seen in the last two years, says CEO Henning Lauridsen of Eiendom Norge.
- In 2022 and 2023, house prices fell a lot in Norway throughout the autumn. This affects seasonal adjustment this year, where the calculation places more weight on recent years. Historically, the price development now in September is completely normal, he says.
- The most startling thing about the September figures is that the turnover volume continues at a high level. If this pace persists, 2024 will be a year with record volumes in the used market, says Lauridsen.
Many sales, decreasing supply
In September, 10,195 homes were sold in Norway, which is 11.7 per cent more than the corresponding month in 2023.
So far this year, 78,697 homes have been sold in Norway, which is 6.8 per cent more than in the same period in 2023.
In September, 11,209 homes were put up for sale in Norway, which is 0.1 per cent more than in the same month in 2023.
So far this year, 87,822 homes have been put up for sale in Norway, which is 3 percent more than in the same period in 2023.
- An exceptionally large number of second-hand homes were sold in September in Norway, and the number of unsold properties fell throughout the month. The same applies to the difference between what has been sold and what has been posted. It is clear that demand is shifting from the crisis-hit new housing market to used housing, says Lauridsen.
It took an average of 46 days to sell a home in September, which was the same as in August. Bergen had the shortest sales time with 24 days. Tromsø and Hamar with Stange had the longest sales time with 66 days.
Strongest in the south and west
Stavanger m/Sandnes had the strongest seasonally adjusted price development in September, with a seasonally adjusted increase of 1.6 per cent.
Hamar m/Stange had the weakest seasonally adjusted price development in September, with a seasonally adjusted decrease of 1 per cent.
The strongest development so far in 2024 is Stavanger and its surroundings with 13.2 per cent. The weakest development so far this year has Bodø m/Fauske with an increase of 3.5 per cent.
- Stavanger and Rogaland stand out from the rest of the country with a solid rise in house prices so far this year. However, this must be seen in the context of the price trend in the region, which has been more or less flat over the past ten years. Many may think it is high time the market picks up here, says Lauridsen.
The lending regulations must be abolished
The consultation period for the Finanstilsynet's proposal for new lending regulations expires on Friday.
- We expect the Ministry of Finance and Finance Minister Trygve Slagsvold Vedum (Sp) to disregard the Financial Supervisory Authority's advice, as it goes against all logic to retain regulations that have major damaging effects and do not work as intended, says Lauridsen.
- The government was wise to reduce the stress test in the lending regulations just two years ago. Now he is wise to let it expire from the New Year. It was intended to be a temporary regulation and then it should remain just that, says Lauridsen.
- In the coming years, we will have the lowest housing construction in Norway since the Second World War. The housing crisis will intensify the strong pressure in the owner-occupied and rented housing market. The only thing that can be done in the short term to stimulate housing construction is to remove the lending regulations, and that will work immediately, concludes Lauridsen.