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Norwegian house prices jumps as the market continues to heat up
Thursday, 03 May 2012
Fewer houses in the market and increasing demand means that Norwegian
house prices rose by 1.5 percent in April compared with March,
according to data from statistics prepared by Pöyry analysis agency on
behalf of the Norwegian Real Estate Agents (NEF) and the Real Estate
Adjusted for seasonal variations, prices rose 0.9 percent compared to
March. Prices are now 8.5 percent higher than in April 2011.
“The annual growth rate has had a downward curve since last fall. The
strong April numbers show a break with this trend. Inflation of 8.5
percent since April 2011, in the context of a clear seasonally adjusted
inflation, shows that the housing market is still characterized by
strong underlying demand,” said Deputy Leif J. Laugen the EFF.
Average price per square meter is now Nkr29.900 million. Average price
per square meter this year is 5.7 percent higher than the average price
for the whole of 2011. With prices unchanged the rest of the year price
will rise from 2011 by 7.1 percent.
When the financial crisis of fell more than three years ago, in
December 2008, the price per square meter was Nkr 21 thousand. Thus,
prices have risen 42 percent since the last bottom.
Demand may have been further strengthened by the somewhat surprising
interest rate reduction from the Bank in mid-March. Normally it means
an interest rate cut of a quarter of a percentage point for low
residential prices, but the central bank's communication about the
extraordinarily low interest rate to be expected in the future, may
have contributed to greater optimism among home buyers, according
By Scancomark.se Team
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