Housing market may see a ‘correction’

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Residential real estate prices are still up 12.5 percent over last year at this time, and a stunning 15.6 percent in Oslo, according to sales prices logged in March. The Oslo market, however, recorded a 0.8 percent decline from February and now housing experts are predicting a “correction” heading into the summer season.

New numbers from the national real estate brokers organization Eiendom Norge show an overall month-to-month increase of 1.1 percent. The strongest price growth was in Drammen, just west of Oslo, at 3.5 percent.

Oslo has long recorded the biggest increases, tied to a classic shortage of supply versus demand. Now more new housing units are coming on the market but buyers are also becoming more cautious. The prospect of higher interest rates later this year is also believed to have a dampening effect.

Brokers see little risk of any major price decline though, because of still-strong demand and high activity. It only took an average of 14 days to sell residential property in the Norwegian capital last month.

newsinenglish.no staff