House prices in Norway reach all-time high
House prices in Norway have never been higher, new figures revealed on Monday.
Housing prices in Norway increased by 0.8 percent from April to May, according to the latest figures from Real Estate Norway (Eiendom Norge).
The industry organisation predicts any changes to real estate prices will be more moderate going forward.
"Housing prices continued to rise in May, but the rate of growth is somewhat weaker than in recent months, when there was also strong growth in the seasonally adjusted prices," Henning Lauridsen of Eiendom Norge said.
The property market in Norway is characterised by substantial seasonality - housing prices tend to go up in the late spring and summer and then down in late autumn and winter.
After three consecutive months of growth, seasonally adjusted housing prices remained unchanged in May.
So far this year, overall house prices have risen by 7.7 percent in Norway.
A new record
However, as housing prices fell in late 2022, the 12-month price growth - including May 2023 - amounted to 0.1 percent.
"We are marginally above May of 2022 in terms of prices, and May last year was the all-time high," Lauridsen said.
In Oslo, housing prices have notably risen over the past six months. Adjusted for seasonal variations, Oslo prices rose by 0.4 percent in May.
Prices in the capital are now 0.2 percent higher than the previous all-time high registered in August last year, according to the newspaper Dagens Næringsliv (DN).
Growth to flatten out?
An increase in the number of new homes put on the market in May indicates a more moderate price development in the coming months.
"With a normal course of business with falling prices through the autumn, we will probably end up with an increase of 3-4 percent in 2023.
"This will still mean a fall in real housing prices if the consumer price index does not come down by a lot in the future," Lauridsen said.
In May, 10,297 homes were sold in Norway, which is 1.3 percent fewer than the corresponding month in 2022.
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Housing prices in Norway increased by 0.8 percent from April to May, according to the latest figures from Real Estate Norway (Eiendom Norge).
The industry organisation predicts any changes to real estate prices will be more moderate going forward.
"Housing prices continued to rise in May, but the rate of growth is somewhat weaker than in recent months, when there was also strong growth in the seasonally adjusted prices," Henning Lauridsen of Eiendom Norge said.
The property market in Norway is characterised by substantial seasonality - housing prices tend to go up in the late spring and summer and then down in late autumn and winter.
After three consecutive months of growth, seasonally adjusted housing prices remained unchanged in May.
So far this year, overall house prices have risen by 7.7 percent in Norway.
A new record
However, as housing prices fell in late 2022, the 12-month price growth - including May 2023 - amounted to 0.1 percent.
"We are marginally above May of 2022 in terms of prices, and May last year was the all-time high," Lauridsen said.
In Oslo, housing prices have notably risen over the past six months. Adjusted for seasonal variations, Oslo prices rose by 0.4 percent in May.
Prices in the capital are now 0.2 percent higher than the previous all-time high registered in August last year, according to the newspaper Dagens Næringsliv (DN).
Growth to flatten out?
An increase in the number of new homes put on the market in May indicates a more moderate price development in the coming months.
"With a normal course of business with falling prices through the autumn, we will probably end up with an increase of 3-4 percent in 2023.
"This will still mean a fall in real housing prices if the consumer price index does not come down by a lot in the future," Lauridsen said.
In May, 10,297 homes were sold in Norway, which is 1.3 percent fewer than the corresponding month in 2022.
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