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Why new home sales in Norway have plunged by 39 percent

Why new home sales in Norway have plunged by 39 percent
A total of 17,531 new homes have been sold in Norway this year. Photo by Kilian Kremer / Unsplash

Sales of new homes in Norway have fallen by 39 percent compared to the time last year. Here's why.

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Compared to November 2021 figures, sales of new homes dropped by 39 percent last month, according to the Boligprodusentenes Forening association's most recent statistics on new homes.

"We see that sales of new homes are in free fall. It is quite dramatic," the association's managing director, Lars Jacob Hiim, said.

A total of 17,531 new homes have been sold in Norway this year – 22 percent fewer than in the same period last year.

Hiim believes the decline in new home sales will lead to layoffs and redundancies in the construction industry.

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Why are sales plummeting?

The ever-increasing interest rates and challenges related to securing financing for home purchases are among the factors cooling off the market.

Sverre Molvik, director of one of the country's largest housing builders, Selvaag Bolig, says sales are going slower than usual.

"Buyers have adopted a more wait-and-see approach, and it's not just about the interest rate situation.

"We see that there are many interested parties for some properties that end up falling through as buyers because they cannot get financing from the bank," Molvik told the newspaper Dagens Næringsliv.

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