Advertisement

imf

Norway houses prices overvalued: IMF

The Local Norway
The Local Norway - [email protected]
Norway houses prices overvalued: IMF
Oslo - Photo: Simen Schikulski

Norway's house prices are amongst the most over-valued in the OECD, the International Monetary Fund has warned as it launches its new Global House Price Watch.

Advertisement

According to the IMF's survey of 51 OECD countries, only houses in New Zealand and Canada are selling at a greater divergence from their historic price-to-rent ratio, while houses in Norway were the seventh most expensive in comparison to average incomes. 
 
In a blog post on Thursday, IMF Deputy Managing Director Min Zhu  called for country's to take action to contain house prices or risk a future financial crisis. 
 
"Our research indicates that boom-bust patterns in house prices preceded more than two-thirds of the recent 50 systemic banking crises," he wrote. 
 
Here's a chart comparing Norway's deviation from historic price-to-rent ratios: 
 
 
 
And here's once comparing the relationship between house prices and average incomes: 
 
 
 

More

Comments

Join the conversation in our comments section below. Share your own views and experience and if you have a question or suggestion for our journalists then email us at [email protected].
Please keep comments civil, constructive and on topic – and make sure to read our terms of use before getting involved.

Please log in to leave a comment.

See Also