Why now might be a good time to buy a home in Norway
Current market conditions in Norway mean now may be a good time to purchase a home, industry experts have told The Local.
With a lot of properties on the market and a number of sellers struggling to sell their homes, prospective homebuyers in Norway find themselves in a good position.
While the current real estate landscape in Norway can't be called a full-fledged "buyer's market", there are many possibilities for those aspiring to own a home.
With many properties to choose from and motivated sellers, prospective homeowners have a unique opportunity to realise their housing dreams – especially if they have a big budget and are looking for apartments or detached houses in one of Norway's major cities.
A good time to buy?
"Now is the time to buy. The reason for my statement is the historical fact that the Norwegian housing market has always been a good long-term investment. But I stress long-term," Martin Kiligitto, from Nordvik Bolig, told The Local.
"A segment to investigate would be the leisure market for cabins. There is a steady supply but a lower demand at the moment. As the interest rates have increased during 2023, individuals and families are feeling the effects on their family economy; thus, some have seen the need to sell their cabins," Kiligitto said.
READ MORE: What are the tax rules when you buy and sell property in Norway?
The property expert also pointed out that "apartments and detached houses in some of Norway's major cities priced at over 8 million kroner" have seen an "increase in the number of days in the market before they're sold," which increases the probability for buyers to "purchase real estate below the market price."
Housing prices in the first half of 2024
According to Kiligitto, it is unlikely that the market will pick up notably as we approach the end of 2023 and look to 2024.
"We anticipate that the central bank of Norway will increase interest rates on December 14th to stem inflation. In our view, we expect that this fall market will continue into the first half of 2024.
"That includes a continued increase in the number of days a home has in the market before it is sold, fewer participants at housing viewings, fewer bidders, and more price negotiations," he said.
Nordvik Bolig also expects a "slight drop in prices first half of 2024," which is expected to "even off during the second half of 2024."
READ MORE: The hidden extra costs when buying property in Norway
However, buyers should take note of regional housing market differences in the country.
"Our data shows a steady number of transactions in the western part of Norway. Probably due to the good market outlook for the oil, offshore, and energy sector," Kiligitto said.
No blue skies on the horizon for renters
Unfortunately for people renting homes in Norway, experts don't think rent prices will come down anytime soon.
"There is a steady number of people moving to the big cities in Norway, in addition to immigration and refugees needing homes as well.
"In addition, we have more or less seen a halt in the construction of new apartments. Therefore, we believe that the prices in the rental market will continue to be high in the larger cities, with probably a slight increase during 2024," Kiligitto told The Local, echoing last week's comments from Henning Lauridsen, managing director of Real Estate Norway, who told The Local he expected rental prices to "go up quite sharply next year, just as they have this and last year."
Lauridsen pointed out that one of the key reasons for the expected increase lies in the increased costs for the apartment owners.
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With a lot of properties on the market and a number of sellers struggling to sell their homes, prospective homebuyers in Norway find themselves in a good position.
While the current real estate landscape in Norway can't be called a full-fledged "buyer's market", there are many possibilities for those aspiring to own a home.
With many properties to choose from and motivated sellers, prospective homeowners have a unique opportunity to realise their housing dreams – especially if they have a big budget and are looking for apartments or detached houses in one of Norway's major cities.
A good time to buy?
"Now is the time to buy. The reason for my statement is the historical fact that the Norwegian housing market has always been a good long-term investment. But I stress long-term," Martin Kiligitto, from Nordvik Bolig, told The Local.
"A segment to investigate would be the leisure market for cabins. There is a steady supply but a lower demand at the moment. As the interest rates have increased during 2023, individuals and families are feeling the effects on their family economy; thus, some have seen the need to sell their cabins," Kiligitto said.
READ MORE: What are the tax rules when you buy and sell property in Norway?
The property expert also pointed out that "apartments and detached houses in some of Norway's major cities priced at over 8 million kroner" have seen an "increase in the number of days in the market before they're sold," which increases the probability for buyers to "purchase real estate below the market price."
Housing prices in the first half of 2024
According to Kiligitto, it is unlikely that the market will pick up notably as we approach the end of 2023 and look to 2024.
"We anticipate that the central bank of Norway will increase interest rates on December 14th to stem inflation. In our view, we expect that this fall market will continue into the first half of 2024.
"That includes a continued increase in the number of days a home has in the market before it is sold, fewer participants at housing viewings, fewer bidders, and more price negotiations," he said.
Nordvik Bolig also expects a "slight drop in prices first half of 2024," which is expected to "even off during the second half of 2024."
READ MORE: The hidden extra costs when buying property in Norway
However, buyers should take note of regional housing market differences in the country.
"Our data shows a steady number of transactions in the western part of Norway. Probably due to the good market outlook for the oil, offshore, and energy sector," Kiligitto said.
No blue skies on the horizon for renters
Unfortunately for people renting homes in Norway, experts don't think rent prices will come down anytime soon.
"There is a steady number of people moving to the big cities in Norway, in addition to immigration and refugees needing homes as well.
"In addition, we have more or less seen a halt in the construction of new apartments. Therefore, we believe that the prices in the rental market will continue to be high in the larger cities, with probably a slight increase during 2024," Kiligitto told The Local, echoing last week's comments from Henning Lauridsen, managing director of Real Estate Norway, who told The Local he expected rental prices to "go up quite sharply next year, just as they have this and last year."
Lauridsen pointed out that one of the key reasons for the expected increase lies in the increased costs for the apartment owners.
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