So far in 2024, house prices in Norway have risen by 7.2 per cent.
The average price for a home in Norway was NOK 4,763,894 at the end of April.
– House prices rose by 1.2 per cent in April, which gave a strong rise of 0.7 per cent seasonally adjusted. There is a sharp increase in nominal house prices in the first four months of the year, but it is worth noting that house prices adjusted for inflation do not have a corresponding growth, says CEO Henning Lauridsen of Eiendom Norge.
– With a good salary settlement both last year and this year, it is not unnatural that house prices adapt to this improvement in purchasing power. Our assessment is that this, in combination with declining completion of new homes, is what explains much of the strong development now, he says.
The spring flood is here
In April, 9,942 homes were sold in Norway, which is 42.9 per cent more than the corresponding month in 2023.
So far this year, 30,730 homes have been sold in Norway, which is 4.3 per cent more than in the same period in 2023.
In April, 10,881 homes were listed for sale in Norway, which is 11.9 per cent more than in the same month in 2023.
So far this year, 32,347 homes have been put up for sale in Norway, which is 3.7 per cent more than in the same period in 2023.
– A large number of homes were both sold and advertised in April, and we had a real spring flood in the housing market in April, says Lauridsen.
– The number sold and published is now well above both 2022 and 2023.
It took an average of 54 days to sell a home in April, down from 56 days in February. Oslo and Stavanger and surrounding areas had the shortest sales time with 27 days. Tromsø had the longest sales time with 105 days.
Differences in price trends
Asker/Bærum and Kristiansand and its surroundings had the strongest seasonally adjusted price development in April, where prices rose by 1.4 per cent.
Drammen and its surroundings had the weakest seasonally adjusted price development in April, with a seasonally adjusted decrease of 0.9 per cent.
The strongest development so far in 2024 has Ålesund and its surroundings with 10 per cent. The weakest development so far this year is Bodø with/Fauske, with an increase of 4.7 per cent.
– So far this year, there has been a strong rise in house prices in all areas. Bergen, Stavanger and Ålesund stand out with particularly strong development, says Lauridsen.
The government’s timing is lousy
In the last month, the government has announced a number of new regulations for the housing market.
– The timing of several of the proposals is lousy. The most radical is the proposal from Municipal and District Minister Erling Sande (Sp) to give municipalities the opportunity to demand that the housing that is built must be housing associations, alternative housing models or rental housing for all time, says Lauridsen.
– This publisher will further weaken housing construction in Norway. And that at a time when housing investment has experienced the strongest setback in many decades. The large drop in the number of secondary homes in recent years in the wake of the government’s massive increase in property tax shows how sensitive the housing market is to policy changes. Sande should put the proposal in the drawer immediately, says Lauridsen.
– The government should think carefully before adopting regulations that inhibit the construction of new homes in Norway. They only risk making a difficult situation in the construction industry even more difficult. If they want to do the housing market and housing construction a service, they should rather abolish the lending regulations and implement powerful counter-cyclical measures in the revised state budget this May, concludes Lauridsen.
Further information:
Complete statistics can be downloaded at www.eiendomnorge.no.
Watch Boligbobla TV with the press conference from 10.30 to 11.30 here.
The press conference begins at 11 a.m. Before and after the press conference, head of communications and politics Erik Lundesgaard has current guests from the housing market in the studio who comment on market developments.
Today’s guests are real estate investor and founder Pål Restad (Eiendomshjørnet) and head of residential and commercial property analysis Jan Håvard Valstad (EiendomsMegler 1 Midt-Norge).
When referencing Eiendom Norge’s house price statistics, Eiendom Norge, FINN and Eiendomsverdi AS must be given as the source.
For comments:
Henning Lauridsen, managing director, mobile 997 20 485
Grethe Wittenberg Meier, chairman, mobile 991 52 164
For questions about the housing price statistics:
Erik Lundesgaard, head of communications and politics, mobile 95 88 19 87
