What is happening with the real estate market in Bergen?
Bergen, a key economic hub on Norway's western coast, has experienced substantial activity in its property market during the first half of the year. Experts believe the second half of the year could be a "buyers market".
So far this year, house prices in Norway have risen by 5.2 percent, according to the industry organisation Real Estate Norway (Eiendom Norge).
In a August press release, Eiendom Norge pointed out large differences in housing price developments across the country in July and that a price surge in Kristiansand, Stavanger, and Oslo pushed up prices nationally.
Bergen, Norway's second-largest city, saw weak price development in July, according to Henning Lauridsen, managing director of Eiendom Norge.
Despite the lower price growth, Fredrik Søreide CEO Kaland&Partners, said the market in Bergen has still been healthy.
"The first six months of this year were the best period market-wise in the Bergen area in many years; it was a really good market from our perspective. We are excited to see how the market will react to more expensive mortgages and rising interest rates in the second half of the year," Søreide said.
A buyers' market on the way?
Most Norwegian industry experts agree that a certain level of market slowdown is to be expected for the last quarter of the year – and property in western Norway is unlikely to be an exception.
"At the moment, selling a home is not a problem. The buyers are there, we will see an increase in the number of new properties put on the market for sale, there will be more properties to choose from in the upcoming months, and we believe it will be a buyers' market in the next five or six months.
"From our side, in terms of changes, we notice that we have had to work more to get a property sold, but that's the only thing. We have to spend around 10-15 hours more per week on our job, securing the purchase, and we also have to hold more viewings (Norwegian: visning) before properties are sold," Søreide said.
He added that there would be an increase in the number of properties that require three or more viewings. Furthermore, prices will level out following a strong start to the year.
"In the first half-year, prices increased by roughly six percent, higher than expected. Now, we will have some negative price developments in the coming months, but I think we'll have a soft landing when the year ends, ending up at around zero percent or one percent price increase - better than expected before 2023," Søreide said.
READ MORE: Norway likely to see housing price dip to continue into the autumn
Does it pay to buy now, or should you wait?
But what advice does Søreide have for people looking to buy a home in western Norway this year?
"Well, first of all, remember that you always sell and buy in the same market. If you want to buy a more expensive property, it is a good time to buy now. Luckily, we live in Norway, which has quite a good market.
"Of course, everything is becoming more expensive, not only mortgages, but food and other stuff, so it's not surprising that people are somewhat unsure about where they should buy or not.
"In any case – we expect some 'rainy' days in the market in terms of price developments moving forward, with more or less the same number of properties available for purchase… Regardless of whether the market is good or not as good.
"People are divorcing, dying, new people are moving to the cities... Many Ukrainians moved to Bergen recently, and many of them have good finances and can buy property here in Norway. That's also a factor that affects the real estate market in the region," Søreide told The Local.
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So far this year, house prices in Norway have risen by 5.2 percent, according to the industry organisation Real Estate Norway (Eiendom Norge).
In a August press release, Eiendom Norge pointed out large differences in housing price developments across the country in July and that a price surge in Kristiansand, Stavanger, and Oslo pushed up prices nationally.
Bergen, Norway's second-largest city, saw weak price development in July, according to Henning Lauridsen, managing director of Eiendom Norge.
Despite the lower price growth, Fredrik Søreide CEO Kaland&Partners, said the market in Bergen has still been healthy.
"The first six months of this year were the best period market-wise in the Bergen area in many years; it was a really good market from our perspective. We are excited to see how the market will react to more expensive mortgages and rising interest rates in the second half of the year," Søreide said.
A buyers' market on the way?
Most Norwegian industry experts agree that a certain level of market slowdown is to be expected for the last quarter of the year – and property in western Norway is unlikely to be an exception.
"At the moment, selling a home is not a problem. The buyers are there, we will see an increase in the number of new properties put on the market for sale, there will be more properties to choose from in the upcoming months, and we believe it will be a buyers' market in the next five or six months.
"From our side, in terms of changes, we notice that we have had to work more to get a property sold, but that's the only thing. We have to spend around 10-15 hours more per week on our job, securing the purchase, and we also have to hold more viewings (Norwegian: visning) before properties are sold," Søreide said.
He added that there would be an increase in the number of properties that require three or more viewings. Furthermore, prices will level out following a strong start to the year.
"In the first half-year, prices increased by roughly six percent, higher than expected. Now, we will have some negative price developments in the coming months, but I think we'll have a soft landing when the year ends, ending up at around zero percent or one percent price increase - better than expected before 2023," Søreide said.
READ MORE: Norway likely to see housing price dip to continue into the autumn
Does it pay to buy now, or should you wait?
But what advice does Søreide have for people looking to buy a home in western Norway this year?
"Well, first of all, remember that you always sell and buy in the same market. If you want to buy a more expensive property, it is a good time to buy now. Luckily, we live in Norway, which has quite a good market.
"Of course, everything is becoming more expensive, not only mortgages, but food and other stuff, so it's not surprising that people are somewhat unsure about where they should buy or not.
"In any case – we expect some 'rainy' days in the market in terms of price developments moving forward, with more or less the same number of properties available for purchase… Regardless of whether the market is good or not as good.
"People are divorcing, dying, new people are moving to the cities... Many Ukrainians moved to Bergen recently, and many of them have good finances and can buy property here in Norway. That's also a factor that affects the real estate market in the region," Søreide told The Local.
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