Obos prices in Oslo rose by 1.6 percent in February – E24

This rise is somewhat weaker than the average February in the past ten years.

Obos prices in Oslo rose by 1.6 percent in February, according to a press release from the housing association.

Prices thus continue to rise since January, when they rose by 3.6 percent in Oslo.

The capital, Opus, has the largest catchment area with about 25 percent of the market.

– Slightly weaker than average

On a national basis, prices for unused Opus homes rose 1.4 percent last month.

– OBOS prices tend to rise in February. The increase is still slightly weaker than the average February in the past 10 years, says chief economist Cecil Monsold.

She says that the moderate increase in prices came as expected, in light of the increase in interest rates and “a number of used homes being offered for sale.”

– Signs of mood changes

The price per square meter of used Obos houses reached NOK 78,376 in Oslo, while nationally it reached NOK 67,788 in February.

Fewer homes were sold overall than in February of last year, but then sales hit a record low, Opus wrote.

– We see signs of a changing mood in the housing market as more people expect an increase in house prices, says Munsold.

The chief economist believes this should be viewed in light of signals from Norges Bank that interest rates have been reached and that there may be a rate cut during the autumn.

Therefore, we expect demand for housing to increase and prices to grow stronger than usual as we approach the summer, especially in the second half of the year. The prospects for good wage growth and the fact that few new homes have been completed, especially in Oslo, are also attractive, she says.

I think prices will rise

Opus expects house prices to rise by three per cent in Oslo from December 2023 to December 2024. On a national basis, the housing association expects prices to increase by one per cent in the same period.

However, Mønsold does not rule out stronger price growth than this, especially if the Bank of Norway actually cuts interest rates in September.

Right of first refusal continued to be used by 33.9 percent in February, compared to 29.5 percent in January.

Obos prices come as usual before the release of figures for the wider market. Eiendom Norge presents housing price statistics for February on Tuesday next week.

House prices will fall in 2023

House prices in Norway rose during the first part of 2023, before the trend turned lower in the fall. Last year overall ended with an increase of 0.5 percent. This was therefore the weakest year since 2017.

The Bank of Norway has raised interest rates several times in recent years, most recently to 4.5 percent in December before the interest rate remained unchanged in January. Banks followed suit by raising mortgage interest rates.