House prices rose by 1.9 per cent in May 2020. Adjusted for seasonal variations, prices rose by 1.4 per cent.
Housing prices are now 2.5 per cent higher than a year ago.
- Housing prices rose sharply in all areas of Norway in May. This is the strongest upturn in a month in the history of housing price statistics, and the trend more than corrects the seasonally-adjusted fall in house prices in March and April in the wake of the corona eruption measures. The rise in prices must be seen in the light of the opening up of society, as well as the strong financial stimulation of the record-low policy rate from Norges Bank, says Henning Lauridsen, CEO of Eiendom Norge.
- Despite the sharp rise in prices, the fall in the number of homes sold and the number of homes put up for sale continues. In May and June, the so-called "spring flood" normally tends to enter the Norwegian housing market, but this has so far not been realized. Households that have planned purchase and sale of housing have no reason to postpone the decision. The housing market is back after the corona shock and well functioning, says Lauridsen.
Less activity but stable sales time
In May, 9,615 homes were sold in Norway, which is 7.7 percent less than in the corresponding month in 2019. So far this year, 37,931 homes have been sold in Norway, which is 5.5 percent less than at the same time in 2019.
In May, 11,217 homes were put up for sale in Norway, which is 18.4 per cent less than in the same month in 2019. So far this year 43,294 homes have been put up for sale, which is 7.3 per cent less than at the same time last year.
- There were significantly fewer homes sold and laid out in May this year than in the record year 2019. But so far in 2020, there have been sold and far out almost as many homes as in 2017 and 2018, which were also years of high turnover in the housing market, says Lauridsen.
It took an average of 54 days to sell a home in May 2020. That is a decline from 55 days in April. Oslo had the fastest selling time with 24 days and the slowest selling time had Stavanger w / surrounding area with 68 days.
- Sales time is stable and still somewhat higher than in previous years, says Lauridsen
Correction or new rise?
Oslo's strongest seasonally adjusted price trend in May was up 2.2 per cent. The weakest seasonally adjusted price trend was Romerike and Asker and Bærum with an increase of 0.3 per cent.
The strongest 12-month growth was Oslo and Ålesund w / surrounding area with 3.9 per cent, while Stavanger w / surrounding had the weakest development in the last 12 months with a decline of 1.3 per cent.
- Oslo, which had the strongest fall in house prices in April, is also experiencing the strongest rise in May. The question now is whether house prices will continue to develop just as strongly in the period ahead or whether the development in May was only a correction of the abnormal fall in house prices in March and April. Regardless of this, there is no need to wait for home buying and selling now. The housing market is functioning well, says Lauridsen.
- In the slightly longer term, our concern is related to the housing market and the sharp decline in sales we have seen there in the wake of the corona measures. Although we may have to live with measures against the corona epidemic for a long time, there will be an underlying housing need in line with population trends and demographic changes. It is therefore important that the municipalities keep up their regulatory pace, and the dwellers continue to develop and put out new projects for sale, and this especially in the press areas in Norway, Lauridsen concludes.