The decision for 2021 is ready. Oslo stands out with clearly the weakest price growth in the last year.
The case is being updated …
Adjusted for seasonal variations, prices fell by 0.2 per cent in December, according to recent figures from Eiendom Norge.
House prices have thus risen by 5.2 per cent in 2021. In comparison, prices rose by as much as 8.7 per cent in 2020, and by 2.6 per cent in 2019.
– House prices in Norway fell in December as normal for the month. The number of homes sold, on the other hand, is anything but normal. Never before have so many homes been sold during a December month as in 2021, says CEO Henning Lauridsen of Eiendom Norge.
Real price decline for the year in Oslo
Lauridsen points out that there are large differences in annual growth around the country.
In Oslo, house prices rose nominally by 0.1 per cent, Eiendom Norge’s figures show.
Adjusted for seasonal variations, however, prices fell by 0.2 per cent. Thus, the 12-month growth in Oslo is 2.2 percent.
Among the largest cities, Kristiansand had the largest growth during the year of 9 percent. Oslo stands out at the opposite end with a weak growth throughout the year of 2.2 percent. This means that the capital has had a real price decline in 2021, he says.
The strongest among the largest cities is Trondheim, with 8.7 percent, Lauridsen points out. Stavanger also has a strong 12-month growth, with 7 per cent, although prices fell 2.1 per cent in December, and 0.2 per cent seasonally adjusted.
At the same time, the turnover volume has been sky high. Lauridsen states that more than 100,000 second-hand homes have been sold for the first time in a year.
– Almost half of the growth in the number of transactions has come in Agder and Rogaland. In 2021, this region has seen a rise in house prices and turnover after almost a year of weak development, says Lauridsen.
During December, 4,055 homes were sold in Norway, which is 6.4 per cent more than in the corresponding month in 2020, the figures show.
The total for sale in 2021 will then end up at 102,596 homes in Norway, which is 3 per cent more than in 2020. At the same time, 105,068 homes were put up for sale in Norway. This is 2.8 percent more than in 2020.
In December, 2,922 homes were put up for sale in Norway, which is 14.5 per cent less than in the same month in 2020.
Expected moderate development
A moderate development in prices for December was expected in advance. Among other things, both DNB and Handelsbanken believed that December would end with an increase of 0.2 per cent seasonally adjusted.
For DNB Eiendom and Privatmegleren, December was characterized by high activity, they informed E24 on Sunday.
– November was an extremely strong month, so I thought we would get a reaction in December, but was received, said CEO of Privatmegleren, Grethe Meier.
Terje Buraas, CEO of DNB real estate, also spoke about high activity in December, but he is not surprised.
– It has been very stable throughout 2021, and we almost expected that it would continue into December, he said.
Experts believe the housing market will normalize in 2022
Most people are waiting for house price growth to slow down this year, as a result of rent increases to 0.5 per cent last year, and warnings of a further rise in rents this year. Eiendom Norge’s forecast is for four percent growth in 2022, down from around one percent this year.
In November, prices rose by 0.3 per cent adjusted for seasonal variations. At that time, they were 6.6 per cent higher than at the same time the year before.