– It’s been a long time since we’ve had positive glimpses – E24

Obos reports the highest sales rate in over two years. The Association of Housing Manufacturers nevertheless believes that the new housing market is far from healthy.

Last week, Obos sold 125 homes, which is the highest number of sales in a single week since February 2022.

– The high sales figures show that there is a great need in the market, and that customers are in buying mode. In addition, many of the projects are put up for sale close to occupancy, says Daniel Kjørberg Siraj, CEO of Obos, before adding:

– We waited to publish them until we thought the customers would be ready.

Siraj believes that a stable interest rate over time and lower price growth have generally brought customers back.

Lars Jacob Hiim, managing director of Boligproduktorenes Forening, says that it is good news that Obos is reporting higher sales rates.

– It has been a long time since we have had positive glimpses. We are getting cautious signals from several companies that sales are now going somewhat better. But we must remember that we are still at a historically weak level, says Hiim.

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On Thursday, Obos presents housing price figures for April. In March, Obos prices rose two per cent nationally, while in Oslo they rose 2.3 per cent.

Siraj expects a moderate price trend going forward.

– We do not envisage the wildest development, and the dynamics are also slightly different than in the second-hand housing market. New house prices are also high in the first place, so it will limit itself a bit, he says.

He also points out that there can be several financial advantages to buying a new home, including more predictable housing costs. If you buy a second-hand home, you probably have to expect various maintenance measures.

– At the same time, you can see that there is high speed in the second-hand market, often with fierce bidding rounds, so buying a new home at a fixed price gives you a calmer buying situation.

Historically low level

The construction industry has been hit hard by higher interest rates and increased material costs.

New home sales fell by 14 per cent in March, compared to the same period last year, according to the housing manufacturers. The figures for the first quarter of 2024 show a drop of three per cent in new home sales, compared to the first quarter of last year.

New home sales have long been in free fall, and Lars Jacob Hiim has previously called 2023 a crisis year for the industry.

Hiim points out that the figures so far this year show a flattening, and that there is now hope that the bottom has been reached.

– At the same time, you have to prepare for the fact that it can be difficult to get out of the negative situation that the industry is in, he says.

– Far from being declared healthy

Daniel Kjørberg Siraj in Obos hopes that good sales will now lay the foundation for starting new projects.

– There is reason to be optimistic about the fact that new home construction can get underway again. Both the prices and the buyers are dependent on housing being added to the market.

– Obos has been quite aggressive, by making decisions to build before the homes have been sold. This shortens the waiting time, and we believe it can make it easier for people to take the step to buy, he continues.

Hiim in Boligprodukterene agrees that there is now very cautious optimism to be traced. Nevertheless, it is too early to let the jubilation go.

– The new housing market is far from healthy yet. Even if we get somewhat better signals, there is still a need for assistance from the authorities, mainly through strengthening the Housing Bank and changes in the lending regulations, he says.