The cautious hike was the weakest August in the history of price statistics.
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House prices in Norway rose by 0.4 percent in August, according to the latest figures from Eiendom Norge. However, seasonally adjusted, house prices fell by 0.6 percent.
According to Eiendom Norge, which rose a cautious 0.4 percent, house price statistics were the weakest August in history.
– Interest rate hikes are now starting to bite house prices, says Henning Lauridsen, managing director of Eiendom Norge.
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The growth in the first part of 2023 contributes to the fact that we are still good for the rest of the year. House prices in Norway are up 5.7 percent so far this year.
Prices drop in Oslo
Many areas that have seen strong growth so far this year saw weak growth in August.
Prices in Oslo fell by 1.0 percent in August. The seasonal decline was 1.4 per cent in capital.
Prices also fell in Stavanger and surroundings and Kristiansand last month. In Stavanger, prices fell 0.2 percent in nominal terms, while in Stavanger they fell 0.3 percent.
Otherwise, in the big cities, the prices went up. Bergen rose 1.3 percent, while prices in Trondheim rose 2 percent. In Tromsø, prices rose by 1.9 percent in August.
– Autumn will be a bit harder
Olsen, chief economist at Nordea Markets, is not surprised by the drop in gadget prices. He believes prices will continue to drop throughout the fall.
– So far we are waiting for it a bit. It joins a series of signs that the autumn will be a bit tougher for the Norwegian economy and housing market, he says.
Olson adds that the housing market has been greatly helped by changes in mortgage regulations.
– This effect is now removed. Many are now being put off by banks’ liquidity tests, says the chief economist.
Lauridsen at Eiendom Norge says that a weak growth in house prices is expected beyond the autumn, and it is unlikely that we will have a trend similar to last year’s house prices.
– In autumn 2022, house prices fell sharply in the run-up to Christmas, he says, reversing in January with the easing of lending regulations.
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Experts: Residential areas will increase in value
Interest rate increases exponentially
August is generally a strong month for home prices, but an element of uncertainty is when and how strongly interest rate hikes will affect home prices.
Norges Bank raised interest rates “double” in June, and the policy rate was raised further to 4 percent in August. This is the highest interest rate since 2008. Banks have followed suit and fixed mortgage interest rates in line with the central bank’s hikes.
Norges Bank expected a seasonally adjusted fall in house prices of 0.1 percent in August, according to the monetary policy report from June.
Both DNB Markets and Handelsbanken are expected to see a seasonal decline of 0.5 percent in August.
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May be the last month of the year with rising house prices: – It’s a buyer’s market
Home prices fell 1.1 percent in July, a typically weak summer month, but a seasonally adjusted 0.2 percent.
Home prices ended June with a 1.2 percent decline after rising 0.8 percent in May.
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