Norway’s real estate brokers’ organization (Eiendom Norge) reported another price decline in the housing market on Wednesday, with figures showing prices to be down another 1.5 percent on average in November. It was even weaker than normal for the month, but widely viewed as another correction after years of price hikes.
The brokers stressed that what they call “price development” is often weak in November. The numbers this past November were negative in all of Norway’s biggest cities: Oslo prices were down by 0.7 percent compared to October, while Stavanger prices fell 1.1 percent. Bergen and Trondheim both logged price declines of 2.1 percent.
Prices for the 7,326 homes sold in Norway last month were nonetheless still slightly ahead of last year, up 2 percent on average over November 2017. Prices in Oslo are up 4.7 percent over the past 12 months, but only 0.3 percent in Bergen. Analysts point to lots of inventory on the market, including many new building projects.
While some sellers are now nervous, the CEO of the brokers’ group claimed that moderation was healthy. “It’s good, because it contributes to less accumulation of debt and lower risk for financial imbalance,” Geving wrote in a comment to state broadcaster NRK. Others feel the market has become more “reasonable” and may flatten out in the months ahead.