House prices in Norway to continue to fall until the end of the year
Property prices in Norway decreased for the second month in a row in October and will continue to fall throughout 2022, according to a report on the housing market by Real Estate Norway.
The average cost of a home in Norway was 4,328,496 kroner at the end of October figures from Real Estate Norway (Eindom Norge) show.
Overall, house prices fell nationwide, with the dip primarily being due to rising interest rates, according to Hennig Lauridsen, CEO of Real Estate Norway.
“House prices continue the weak development from September and fell further by 1.9 per cent in October. The price drop is mainly due to the fact that the interest rate has been raised sharply throughout the year,” Lauridsen stated in a report on the latest figures.
October’s drop marked the weakest price development in the Norwegian property market since 2008. However, house prices have risen 4.7 overall this year.
Norway’s capital of Oslo saw the largest drop nationwide, with home prices falling by 3.2 percent or 1.7 percent when adjusted for seasonal variation.
Lauridsen said house prices were likely to continue to fall through the rest of 2023.
“There was a weak development in most areas in Norway in October. In some areas, especially Oslo, there was very weak development in October. We expect that the weak development in the housing market will continue throughout the year and it is not unlikely that house price development in Norway in 2022 will end at around 0 per cent,” he said.
In addition, far fewer homes in Norway were sold during October compared to the same month a year prior.