Housing prices in Norway after two consecutive months of falling are returning to the growth trajectory, +0.2% in July 2023, according to Real Estate Norway.
The Norwegian real estate market remains stable despite rising inflation and the rise in the cost of loans. The trend is noticeable compared to the decline that still persists in Sweden and the slower recovery in Denmark.
In the current global economic downturn, the real estate market in Norway remains more stable than the markets of Sweden and Denmark. This was facilitated by the government's relaxation of housing lending rules at the end of last year, as well as limited supply in the Oslo area, which stabilizes prices in the face of a general downturn.
"The housing market is relatively strong, which allows the Bank of Norway to raise rates even more in August," says Oddmund Berg, senior economist at DNB Bank ASA. The expert predicts an increase in rates by 25 basis points both in August and in September.
According to Knight Frank data for the first quarter of 2023, prices for apartments and houses fell in the Swedish cities of Malmo (-13%), Stockholm (-11.9%), the capital of Denmark – Copenhagen (-10%), the capital of Finland – Helsinki (-7.3%). Against this background, the price reduction in Oslo does not look so significant (-1.5%). Of the Scandinavian countries, only the Icelandic capital Reykjavik showed growth in January-March (+11.1%).
In the coming months, prices in Norway will "grow moderately", emphasizes DNB Bank ASA.
Norges Bank, the Norwegian central bank, has revised its pessimistic March forecasts for the housing market and expects prices to rise by 0.3% this year.
Source: Idealista
