Strong rise in house prices in June
Home prices rose by 0.8 per cent in June 2020. Adjusted for seasonal variations, prices rose by 1.0 per cent.
House prices are now 3.5 per cent higher than a year ago.
- Adjusted for seasonal variations, house prices rose in all areas in June, and there was a particularly strong development in house prices in the central Eastland area and in Bergen. In Oslo, Asker / Bærum, Follo and Romerike, this is the strongest increase in a June month in the history of housing price statistics, says CEO Henning Lauridsen of Real Estate Norway.
- In April and May, turnover in the housing market dropped significantly, but in June there was a sharp growth in the number of new homes on the market and the number of homes sold. The fall in turnover in the aftermath of the corona outbreak is virtually recovered compared to 2019. This indicates that the housing market is perceived as safe and predictable, says Lauridsen.
Turnover is back
In June, 11,342 homes were sold in Norway, which is 14.5 per cent more than in the corresponding month in 2019. So far this year, 49,319 homes have been sold in Norway, which is 1.7 per cent less than at the same time in 2019.
In June, 10,984 homes were put up for sale in Norway, which is 9.9 percent more than in the same month in 2019. So far this year, 54,331 homes have been put up for sale, which is 4.5 percent less than at the same time last year.
- Both homes were sold and put out significantly more in June this year than in 2019. Most of the drop in housing sales in April and May have come back again in June, says Lauridsen.
It took an average of 50 days to sell a home in June 2020. That is down from 54 days in May. Oslo had the fastest sales time with 25 days and the slowest sales time had Stavanger w / surrounding area with 71 days.
- Sales time is stable and at a somewhat higher level than previous years. However, the stable sales time is indicative of a well-functioning housing market across the country, says Lauridsen.
Robust housing market
The strongest seasonally adjusted price trend in June was Asker and Bærum with an increase of 3.1 per cent followed by Romerike with 3.0 per cent. The weakest seasonally adjusted price trend was Trondheim and Bodø m / Fauske with an increase of 0.2 per cent.
The strongest 12-month growth was in Oslo with a rise of 5.4 per cent, while Stavanger w / surrounding area had the weakest development in the last 12 months with a decrease of 0.6 per cent.
- The Norwegian housing market has proven very robust even in times of crisis, and it is very positive for both the households and the Norwegian economy that we have not experienced a sharp fall in house prices. It had had negative effects on both the individual and the economy, says Lauridsen.
- At the same time, the weaker economic development in both Norway and internationally should indicate that housing price trends will become more moderate in the coming months, concludes Lauridsen.