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Norwegian holiday home prices rose significantly last year

The price of cabins and holiday homes in Norway increased by 7.2 percent last year, according to recent figures from Real Estate Norway.

A typical Norwegian cabin
Cabin prices, rose significantly last year, new figures have revealed. Pictured above is a cabin blanketed in snow. Photo by Rune Haugseng on Unsplash

There are a few things as Norwegian as a cabin, with the country’s fondness for these holiday homes, typically found by the coast or up in the mountains, being reflected in strong price growth in 2021. 

Last year cabin prices in Norway rose by 7.2 percent, according to figures from Real Estate Norway (Eindom Norge). High price rises followed the previous year when demand for holiday homes exploded due to the pandemic.

“This increase in prices and sales of property in the cabin market, which started in 2020, continued through 2021,” Henning Lauridsen from Real Estate Norway told financial media site E24.

READ MORE: Why Norwegians are so passionate about cabin retreats

The average price of a holiday home in Norway is now around 2.68 million kroner, according to the real estate firm.

Cabins up in the mountains saw the most significant price increases. The prices for these holiday homes rose by 10.1 percent. Holiday cottages by the coast saw a more modest increase of 2.6 percent, while cabins found more inland saw their values rise by just under 10 percent.

More than 8,500 cabins were sold last year, a small reduction compared to 2020 of 3.9 percent. However, the lower sales figures may be due to interest rate hikes.

“The fact that interest rate increases were introduced and that society began to reopen in the autumn probably reduced the volume of sales a lot,” Lauridsen explained.

Trysil, Ringsaker and Vinje were the areas where the most cabins were sold, while the priciest holiday homes were found in Lillesand, Færder and Tvedestrand.

Despite soaring prices and massive demand over the last few years, the number of cabins sold may be on their way back down this year.

“So far, in 2022, 424 cabins have been sold. This is a significant decline from 2021, 2020 and 2019,” Lauridsen said.  

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PROPERTY

Key mistakes to avoid when bidding on a house in Norway 

Norway's house bidding process is equally stressful and confusing, but before putting in an offer, you should make sure you aren't making any of these costly mistakes. 

Key mistakes to avoid when bidding on a house in Norway 

Buying a house is normally stressful enough, whether it’s getting a mortgage in place, going to dozens of viewings or spending hours going through listings. 

In Norway, the process is further complicated by the house bidding process, which you will have to go through when buying most properties today.

Additionally, you could make several mistakes that could make the process harder or cost you dearly. 

READ ALSO: 

Not having financing in place

Before you can bid on a property, you need to visit the bank to ensure financing for your purchase. If you are taking out a mortgage on the house, you will need to make sure you know the set limit the bank will allow to borrow. 

When you make a bid, the estate agent will contact the bank to ensure that you have the financial arrangements. If you do not have enough money or the mortgage your bank agreed on doesn’t cover the cost, your bid will be rebuffed. 

Therefore it is crucial to know your financial limits when entering bidding rounds to avoid any disappointments. 

Making a bid on a house you aren’t sure about

You should be absolutely sure that you could see yourself living in a property when you bid on it. This is because bids in Norway are legally binding, meaning that even if you put in a speculative bid and it’s accepted, you won’t be able to back out.

This means that you should avoid putting in any offers on homes you aren’t 100 percent sure about.

So while you may be in a rush to get on the property ladder or take a step up, patience will prevail over diving in headfirst. 

Forgetting to do proper research

The devil is always in the detail, and as dull as it may be, you should always read the small print to avoid any nasty shocks. 

This is especially important when buying apartments in Oslo and other cities where you will likely encounter housing associations where residents will be expected to pay various fees or contribute to the upkeep of the block. 

“For instance, if they are planning to replace the roof of the block the next year, you will read about it in the sales documents. It is important to consider whether you can afford a property also after potential add-ons,” Trine Dahl-Pettersen, real estate agent at Eindom 1, explained to The Local

Reading the small print isn’t the only place where research pays off. For example, one reader who has bought a house in Norway pointed out that finding a place that needs a little bit of work can help you avoid intense bidding wars, and locals tend to want a ready-made home to move into. 

“Finding a property that won’t go sky high over the asking price when bidding can be challenging. However, I quickly noticed that Norwegians are not afraid to bid high for a ready-to-go home,” Scott told The Local of his experiences buying in Bergen. 

“If you are comfortable doing some work on it, you can find a much better deal, maybe even under the asking price,” he added.

Therefore, market research can help prevent you from paying over the odds. 

Making more than one bid at a time

Unfortunately, putting plenty of bids out and seeing which offers stick could be a lot more disastrous than you may think. 

As mentioned earlier, bids in Norway are legally binding. Meaning that if you have two bids accepted at the same time, you will be legally obligated to purchase both of them.

Not having BankID

Despite the bidding process being done over the phone, there are still some hoops to jump through. 

You’ll need to have a Norwegian Bank ID available for the bidding process, as it is needed to confirm your identity when sending your bids. 

Without this, you won’t be able to lodge any offers. 

In addition to bank ID, you will need a Norwegian identification number (D-number/Personnummer) to hand. 

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