Property Norway: Cabin sales have fallen by 45 per cent this year
Turnover in the cabin market is now back at the levels from before the pandemic, and so far this year around 4,700 cabins have been sold in Norway, according to Eiendom Norge.
– This is approximately the same number as in the same time period in 2019, but 35 per cent fewer than in the same period in 2020 and 45 per cent fewer than in the same period in 2021, says CEO Henning Lauridsen.
During the pandemic, the cottage market was abnormally strong.
– During the lockdown, we were at home a lot and increased use of the country’s holiday homes, in addition to the fact that there were major restrictions on foreign travel. This meant that the pandemic probably accelerated the purchase of cottages for many households, he says.
Uncertain economic times
So far this year, just over 6,500 holiday homes have been put up for sale. This is roughly the same number as the same time period in 2019, but 18 per cent fewer than in 2021.
– With the unstable economic situation we are in now with high electricity prices, price increases and increased rental conditions, it is expected that the turnover volume in the cottage market will return to the levels before the pandemic.
As of 26 September, there are 2,270 holiday homes for sale, this is 15 per cent more than the corresponding date last year, but still a normal level historically.
The turnover time, i.e. the time from when the property was first put up for sale until it is registered as sold, is 52 days so far this year, and is five days more than the same period in 2021.
– Compared to historical data, the turnover time so far in 2022 is very low. For comparison, the turnover time at the same time in 2019 was 71 days. It is still very quick to sell a holiday home in Norway, concludes Lauridsen.