– Crazy for us outsiders – E24

Even students Berget and Maren Lovberg find it difficult to break into the housing market in Oslo.

– The rise in prices is great for the owners, but crazy for us outsiders.

Evan Bergett (23) says about recent house prices. He and his girlfriend Maren Lövberg (22) are studying to be teachers and nurses respectively.

Birkett considered buying an apartment with a friend last year, but decided it wasn't financially feasible. They also don't have many friends who have bought houses.

– I have a friend, but she got an inheritance. Then it worked, says Lowberg.

– What do you think about house prices?

– It will be difficult if we continue to live in Oslo. At least when we were students it was hard to break into. Living here is very expensive, so we can't save anything. When you're newly qualified, you don't get paid much, says the nursing student.

Until then, Berget pays NOK 8,200 a month in rent for an apartment in Grünerloka.

– The apartment is small and expensive, but it has a balcony and is great for staying with friends. But saving money is difficult.

More robust growth

According to the latest figures from Eiendom Norge, house prices fell by 0.2 percent in June. By comparison, house prices rose 0.9 percent in May.

So far this year, house price growth has been stronger than many expected, up 8.2 percent so far this year.

– There is still strong growth in the housing market, with house prices up a full 8 percent so far in 2024, says Henning Lauridsen, managing director of Eiendom Norge.

According to Eiendom Norge, so far this year, prices in the Ålesund area have risen the most. In Oslo, he describes the housing market as “very hot”.

House hunting is on hold

– In the past, everyone said, “If you rent, you're throwing money out the window, so you should buy,” but now it's a pity to buy. You get a little bang for your buck.

says Emily Nicholls (25). He is originally from Ireland and South Africa, but has lived in Norway for the past five years. Now she works as a cook in the capital. Together with two friends, he rents a joint with two friends in Torsho in Oslo.

She says that while everyone else is working, neither she nor her friends are thinking about buying a home.

– When I first moved here three years ago, many of my friends bought an apartment. Now, three years later, no one wants to buy. All my Norwegian friends say it's not the right time to buy, and the market is completely different than it was three years ago, Nicholls.

– It's more expensive and what you get for the money has changed. Apartments now are much smaller than what you could get for the same price a few years ago.

Smaller price than usual

Although house prices typically fall in autumn and winter, DNB's chief economist Gerstie Haagland believes prices will fall less than they usually do in the future.

– We believe that price growth in the housing market will not decrease, but will increase. Interest rates will eventually fall. That, he says, will cause prices to rise because of a lack of new housing.

Handelsbanken's chief economist Marius Gonsholt Howe believes the figures show a more balanced housing market than at the start of the year.

– There was an excellent stock in the market in May. Now there are some conditions that affect the price. Norges Bank said it will wait until next year to cut interest rates. That information is not fully reflected in the home prices we see today. That's why we expect temps to continue beyond 2024, says Hov.

Increased rental prices

Prices have also risen in the rental market. Rents are up 7.7 percent so far this year. Since 2022, rental prices have risen by nearly 18 percent, after more than ten years of near-stagnation.

Rent prices are one of the drivers in the fight against inflation, Norges Bank writes in its monetary policy.

“Continued high inflation in housing rents is helping to drive price growth. We estimate that domestic price inflation will pick up slightly in the near term due to increased wage growth this year,” they write.