In October 2016 the cost of housing in Norway has increased by 12% compared to the same period last year, reports the portal The Local.
"The dynamics of housing prices in October – historically strong. Rising prices for residential property Oslo in October by 1.8% compared to September is a record for that month, because usually in October, prices fall," says Christian Ammerwald Dreyer, CEO of Real Estate Norway. He also notes that the strong performance of the market is endemic in Central and Northern Norway.
The biggest jump in prices in October was recorded in Oslo and Drammen, where the cost of housing increased by 1.8% and 1.2% respectively. The worst results were shown Haugesund and Sandnes, where prices decreased by 0.7%.
Professionals Real Estate Norway noted that such a marked increase in prices is a worrying sign because only in Oslo for the year prices rose by 21.7%. In Drammen, the figure is 16%.
Christian Ammerwald Dreyer said that many buyers, most of whom are investors, are buying housing only because they expect further growth of prices, and this situation is not favorable for the market. High prices, he said, lead to an increase in household debt, because sooner or later housing prices will be adjusted. When that happens, the investment can be not so beneficial, adds Dreyer.
The current situation in the market makes the purchase of housing is much less affordable for first time buyers. So, in October there has been a decline in sales: just sold 7734 residential properties, when a month earlier the figure was 9352. Only in the country for sale 12 130 housing units, which is 14.9% less than in the same period last year.
HomesOverseas.ru
