Advertisement Opportunities | About Us | Contact Us | Tell us what you think | Jobs | Shopping | Dating | Archive 


Market News

The Market Quotes Powered By Forexpros, the Forex, Futures, and Stock Markets Portal.


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 Association (EFF).

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 to  Laugen.
By Team

What do you think about this article and us? Please leave a comment!
  • Should be Empty:

Print Friendly and PDF