Norway’s homebuilders’ association reported historically weak sales of new homes in January and a sharp decline in construction of new housing developments. They blame higher interest rates and a reluctance to invest in new projects.
“We predicted a rough winter and it has been,” said Lars Jacob Hiim, leader of the home building association Boligprodusentenes Forening. It recently released figures showing only 465 sales of new homes in January, down 57 percent from 1,085 in January of 2022. Homes are rarely built on speculation in Norway. If a certain percentage of units in a proposed projected aren’t sold from the drawing board, the project won’t get underway.
Real estate analysts predicted another rise in prices for existing homes, because the demand for housing remains. “People still need homes,” said Carl O Geving of the real estate brokers’ national association Norges Eiendomsmeglerforbund.
NewsinEnglish.no staff
