Prices for Obos homes rose 2.3 per cent in Oslo and 2.0 per cent nationally in March

The prices of used Obos homes in Oslo rose 2.3 per cent in March, after a rise of 1.6 per cent in February and a 3.6 per cent rise in January, figures from Obos show on Tuesday.

EXPECT EVEN HIGHER PRICES: Sissel Monsvold, chief economist at Obos. Photo: Hans Fredrik Asbjørnsen

Nationally, there was a price increase of 2.0 per cent, after a 1.4 per cent increase in February and a jump of 4.2 per cent in January.

On average, the prices of Obos homes in the capital have grown by 1.2 per cent in March in the years 2004–2023.

– OBOS prices tend to rise in March, and they did so this year as well. The increase was stronger than the historical average for March. We can thus state that 2024 has started with significant growth in housing prices, says Chief Economist Sissel Monsvold in Obos in the report.

– We expected prices to rise, but an increase of 7.7 per cent so far this year in the capital and 7.8 per cent nationally was more than expected, given the many interest rate jumps we have had, she adds.

With the price development in March, Obos homes have become 1.8 per cent more expensive in Oslo and 2.3 per cent more expensive nationwide in the past 12 months. The price per square meter is now NOK 80,186 in the capital and NOK 69,149 nationally.

Property Norway on Thursday

Eiendom Norge will come out with its housing price figures for March next Thursday at 11.00.

Their February figures showed a price increase of 1.4 per cent nationally.

“The housing market has surprised in the first two months of the year, and the development is far stronger than most people imagined at the end of 2023,” said CEO of Eiendom Norge, Henning Lauridsen, then.

Eiendom Norge’s Oslo figures showed nominal price growth of 1.3 per cent in February.

Expect more price increases

Monsvold in Obos believes that there are several factors that suggest that house prices will continue to rise this year.

– We can expect one or two interest rate cuts, real wage growth and a good labor market. At the same time, several households believe that house prices will rise in the future.

– How strong the price increase will be will depend on the housing supply. The wild card is whether there will be a large spring release of second-hand homes. That can slow down price growth towards the summer, she points out.

In the autumn, she expects a stronger price development than normal – “at least if the first interest rate cut comes in September”.