Norway houses prices overvalued: IMF

The Local Norway
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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.


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: 



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