House prices rose by 0.8 per cent in May 2023. Adjusted for seasonal variations, prices were unchanged.
So far this year, housing prices in Norway have risen by 7.7 per cent.
The average price for a home in Norway was NOK 4,680,291 at the end of May.
- House prices continued to rise in May, but the rate of growth is somewhat weaker than in recent months, where there was also strong growth in the seasonally adjusted prices. In May, the seasonally adjusted prices are unchanged, says managing director Henning Lauridsen of Eiendom Norge.
- Many homes were sold in May, and so far this year, more second-hand homes have been sold in Norway than at the same time in 2022. There has also been great growth in the number of new second-hand homes on the market throughout the month. This indicates a more moderate development in house prices in the coming months, he says.
- So far this year, house prices have risen far more than everyone thought at the start of the year. With a normal course of business with falling prices through the autumn, we will probably end up with an increase of 3-4 per cent in 2023. That will still mean a fall in real house prices, if the consumer price index does not come down much in the future, says Lauridsen.
In May, 10,297 homes were sold in Norway, which is 1.3 percent fewer than the corresponding month in 2022.
So far this year, 39,591 homes have been sold in Norway, which is 2 percent more than in the same period in 2022.
In May, 12,869 homes were put up for sale in Norway, which is 9.9 per cent more than in the same month in 2022.
So far this year, 43,965 homes have been put up in Norway, which is 3 per cent more than in the same period in 2022.
- The turnover volume has picked up through the spring and so has the supply side. We still expect good activity in the second-hand housing market going forward, says Lauridsen.
It took an average of 35 days to sell a home in May, down from 40 days in April. Stavanger had an accelerated sales time of 20 days. Tromsø had the longest sales time with 58 days.
Strongest in Kristiansand and Stavanger
Romerike had the strongest seasonally adjusted price development in May, where prices rose by 1.1 per cent.
Bodø m/Fauske had the weakest seasonally adjusted price development with a seasonally adjusted decrease of 1 per cent.
The strongest development so far in 2023 is in Kristiansand and Stavanger and its surroundings, with an increase of 12.5 and 11.8 per cent. The weakest development so far this year is Tromsø with an increase of 4.4 per cent.
- So far this year, Kristiansand and Stavanger and its surroundings stand out with great growth in house prices. Kristiansand has long had a price level well below the other medium-sized cities in Norway. Now, however, the price level in Kristiansand is about to rise to the same level as the other cities in Norway, says Lauridsen.
- Unfortunately, new home sales are still very weak. Hopefully, the good development in the second-hand housing market will at some point also spill over into the new housing market, provided that the builders get control over the costs. There is a need for the homes that are not being built now, and it is absolutely necessary to build enough homes in Norway, so that we avoid imbalances in the housing market further into the future, concludes Lauridsen.