House prices fell sharply in September – Hopes for a price collapse in the housing market – NRK Norway – Overview of news from different parts of the country

– It was a nice apartment, but a small bathroom then, says Martine Haavi.

Together with roommate Jørgen Haavi, he is on display at Grünerløkka in Oslo.

– The best thing for us is that the prices keep going down. For those who sell at a loss it is obviously difficult, but we want to pay as little as possible, says Martine.

On Wednesday, Eiendom Norge presented figures showing that their wish can be fulfilled.

House prices fell by 2.2% in September 2022. Adjusted for seasonal variations, prices fell by 0.6%.

– House prices dropped dramatically in September. The sharp increase in August has now been fully corrected in seasonally adjusted house prices, says Eiendom Norge CEO Henning Lauridsen.

Eiendom Norge presents housing price statistics at 11:00.

– Usually with a drop in price

It is not uncommon for house prices to drop towards the end of the year. Eiendom Norge expects that they will continue to decline in the coming months.

– Uncertainty about the development of the Norwegian and global economy makes it difficult to say whether autumn during autumn will be stronger than normal. On the other hand, we won’t be surprised if the price trend in the fall is weak, says Lauridsen.

Earlier in the week, Obos, Norway’s largest real estate developer, reported that their prices fell 3.1% from August to September.

– Prices have usually fallen this time of year, at the same time the decline was clearly greater than in previous years, chief economist Sissel Monsvold explained in a press release.

The show at Grünerløkka is the second in which the couple participates. While you may make a good purchase, they want the feeling to be right.

– We spent a lot of time following and how the stalemate rounds are going. They often go about their business more calmly now, she says.

– Good news for some

Ola H. Grytten is a professor of economics at the Norwegian School of Economics. He believes that the drop in prices could be good news, among other things, for new buyers.

– If you have a secure job and a salary that can tolerate even higher interest rates, it’s clear you can get a bargain in the real estate market now, says Grytten.

Photo: Gerd Johanne Bradland / NRK Hordaland

When banks evaluate a loan application, the borrower has to undergo a “stress test”. This means checking whether it will be able to cope with an interest rate hike of five percentage points.

With an announced interest rate of around 3%, that means being able to manage a home loan with an interest rate of 8%.

Martine Grave and Jørgen Haavi in ​​the kitchen

– Is this dishwasher big enough ?, the cohabitants wonder. Many have to vote in an apartment because they go on strike.

Photo: Bjørne Østrem Djukastein / NRK

– Because the price increase is so high

Real interest is the difference between nominal interest (bank interest before surcharges) and price increases.

Source: Great Norwegian lexicon

“data-term =” realrenta “> realrenta low. Falling house prices have a clear cost side if everything else gets more expensive, says Grytten.

If the Ministry of Finance decides to change the lending rules, it may become more difficult to get a loan after the New Year. This makes the next few months a window of opportunity for those ready to buy.

– We hope to buy before the new year. Imagine having a Christmas party in a new apartment, says Martine.

The highest interest rate in the last 13 years

Because of the high

Price growth or inflation is a persistent rise in the general price level. This means that the value of money calculated in goods and services will be lower and you will have less purchasing power.

Source: Great Norwegian lexicon

“data-term =” price growth “> price growth Since last fall, Norges Bank has consistently raised the benchmark interest rate. From zero interest to September 2021, in one year we had the highest level of interest in the last 13 years.

The consequence of higher interest rates is that the loan becomes more expensive and more people are kicked out of the market.

Movements after the interest rate increase take time to become visible in the statistics, but the broker has close contacts with buyers and sellers. He senses a change.

– Although there is a great deal of interest, for example, in small apartments, we notice that there are slightly fewer people on display, says real estate agency Ane Line Plassen Nordbak.

Ane Plassen Nordbak line

Although the housing sale has gone well, real estate agency Ane Line Plassen Nordbak notes that buyers are now more strategic.

Photo: Alexander Granlie / Alexander Granlie

In his hall, Sagene og Bjølsen in Oslo, he says that after the screenings, people are more expected.

– Nobody wants to be the first to bid, it may now be just over 12:30 before the bidding round starts. But there is still good space, she says.


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