Uncertainty surrounding interest rates and housing price developments has led to many people waiting to put their homes up for sale. CEO Carl O. Geving of the Norwegian Association of Real Estate Agents points out that the supply of used homes in Oslo is lower than usual. According to Eiendom Norge, there were 1,291 used homes for sale in Oslo at the end of March this year, which is the lowest number in the period from 2017 to now, except for the same point in 2021. Geving explains that this is because more used homes have been sold than put up for sale so far this year. He believes the situation in the housing market is "quite special" and that there is reason for concern about a persistent pressure on the supply side going forward.
Housing prices in the capital have continued to rise after the new year and increased by 5.4% from January to March, but they were still 6.2% lower than the record high prices from August last year. Geving thinks it will take a long time for the new housing market to pick up again, and he expects many homebuyers will be willing to bid higher to secure a home before prices rise further.
Housing researcher Mari O. Mamre at NMBU also believes that price development in April will be strong, despite a new interest rate hike in March. She thinks that rising interest rates and weakened purchasing power among many are causing people to hesitate to sell now and postpone their home sales. This leads to competition for the limited supply among buyers and pushes prices up.
CEO Grethe Meier of Privatmegleren also expects the supply to pick up going forward but believes the major release will come after the summer. Meier thinks that many potential sellers are waiting for the market to stabilize and for interest rate increases to subside before choosing to put their homes up for sale. She, therefore, believes that housing prices will continue to rise in some areas of Oslo, especially in the most popular neighborhoods, but that price growth will slow down somewhat after the summer when the supply is expected to pick up.
In summary, Oslo is facing a low housing supply, and real estate agents expect fierce competition and rising housing prices in the time ahead. Some experts believe in a spring release in the housing market, while others expect the major release to come after the summer. Homebuyers and sellers must be prepared for a competitive market and take into account the interest rate hikes and uncertain price developments.
Source: DN
