The housing market is expected to experience a heavy fall. However, there has never been more interest in housing in Finn.no.
After impressive growth in the past decade, the momentum in the housing market has slowed. The overall effect of higher interest rates and the increased cost of living is starting to hurt Norwegians, and last month house prices fell by 1.1 per cent, according to Indom Norge.
So far this year, home prices are still managing to grow at 5.2 percent. However, there is broad agreement among brokers and experts that growth will disappear before the end of the year.
Last Thursday, DNB Markets wrote that it believes the housing harvest will be bleak.
“Although we expect the peak in interest rates to be reached in September, we believe that it will take some time before the interest rate hike takes full effect. Therefore, it is heading towards a dark autumn in the housing market, and we estimate that prices will decline on All the way into the new year and it will be about 3 percent lower than the peak it reached in August 2022.” .
Traffic logging
August is traditionally the month in which the fall edition arrives. There has also been a wave of second-hand homes on the market this year, Finn says.
– Nationally, there are currently 18,600 homes for sale on the market in Funen. If we compare this to the same day last year, we see a 25 per cent increase in the number of homes for sale. Part of the reason for the increase is that we have put behind us a period of very high activity in the hot housing market, says Jürgen Hellestveit, director of Finn eiendom.
Hellesvet explains that although there has been a sharp increase compared to the same period last year, the number of homes is lower than it was before the pandemic.
Higher interest rates mean that most people expect homebuyers to be somewhat more cautious. However, Finn has record traffic on its websites.
– So there are more homes for sale than there were last year, and we also see that the interest in homes for sale is now high. Finn set a record for for sale property ads last week with a cool million hits, so interest remains high, he says.
Big order
They are seeing a lot of interest, despite the bleak prospects, says Eie eiendomsmegling’s director, Hedda Olfnes.
She says Eie also gets a lot of traffic on her websites, and real estate agents are in high demand.
– Says Olfnes: There were not so many people who looked for the services of real estate agencies before.
At the same time, the market has not completely hibernated yet, although it senses clouds on the horizon.
The housing turnover rate is the same this year compared to last year. So the house sells, and it takes a little longer for the buyer and seller to agree on a price. “We don’t have the kind of screenings we did at the beginning of the year, when the movie was crowded, but so far no one has reported a big difference,” says the director.
Can pick up next year
It ran random tests inside Eie to check whether homebuyers are ahead of the market, or if those who are selling something cheaper are driven by economic demand. It hasn’t happened yet. Now she still worries that the fall will be rough.
Because the cost of living is high and interest expense may mean you are forced to sell. I’m not sure if people can afford the extra costs. So far, she says, things have gone surprisingly well, but there is a pain point somewhere.
In its analysis, DNB believes that the peak interest rates will come in September, and that they will then remain at 4.25 percent until December next year.
They believe that greater predictability could help move the housing market forward again after the end of the year.
Thus, the housing shortage and lack of housing construction could cause prices to rise steadily again, the brokerage house believes.
Finn No Owned by Sheepstead. E24 is a subsidiary of the Schibsted Group. Some E24 journalists own shares in Schibsted, by participating in the group’s equity savings scheme.
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