– There is still very high activity, and it may indicate that we reach an all-time high for a single month in our company, says CEO Terje Buraas in DNB Eiendom.
According to Buraas, DNB sells between 10 and 15 percent more properties in September this year compared to the same month last year.
Normally, prices fall by between 1 and 1.5 per cent in September.
– In our numbers, we seem to be a little down, but not much. I assume that we are between 0 and -1 percent on a national basis, says Buraas.
In Oslo, three out of four homes DNB sells now go for a price quote or more.
– Normally, Oslo prices also fall in September, while we have a flat development in our portfolio, ie we are around zero, says Buraas.
– Interest rates are by far the strongest driver
In summary, this is the wildest housing year I have experienced in my 25 years in the industry, says Buraas.
From a total collapse on 12 March, the housing market has moved to turnover records every month from May.
– If this continues into the last quarter, then almost five percent more homes will be sold this year than last year. If anyone is wondering if low interest rates are affecting the housing market then they can write textbooks about this year. Interest rates are by far the strongest driver of the activity, and we Norwegians have underlying good faith in their own financial future, says Buraas.
This is how house prices have developed on a national basis in September in previous years, nominally:
2016: 0 %
Source: Eiendom Norge, Eiendomsverdi, Finn.no
– I think inflation is now slowing down somewhat
Kent Victor Syverstad, CEO of Eiendomsmegler 1, states that the chain has so far sold 11 per cent more Oslo homes this month compared with last year’s September, and believes it could be a record month.
– We believe that inflation will now slow down somewhat. In Oslo will see a smaller price increase in September of 0.4 to 0.5 percent, Syverstad estimates based on its own figures.
The country as a whole does not have Syverstad as good an overview of, but thinks it will end with a small price drop.
He says there is still a very high demand for smaller apartments in Oslo. One-, two- and three-room apartments are sold very quickly and at good prices, according to Syverstad.
– Around 75 percent of the homes we sell go to or above the suggested price. If we collect the “smaller” apartments in Oslo, around 85 per cent goes to or above the suggested price, and the turnover rate is very high, says Syverstad.
He believes the price development will remain moderate in Oslo in the future.
– Will exclude more
On Monday, Finanstilsynet proposed tightening housing lending.
If Finanstilsynet gets approval for a proposal to reduce the maximum borrowing from five 5 to 4.5 times the income, this will have unfortunate consequences for young people and especially for Oslo, Syverstad believes.
– It will provide even greater class differences for those with and without the family bank in the back. We believe that in a short picture it has less significance for price development, but will exclude more people from entering the housing market, says Syverstad.
On Monday 5 October, Eiendom Norge will present its nationwide second-hand housing statistics for September.
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