Most agree that housing prices will turn around in 2018
The largest analytical environments have repeatedly adjusted their forecasts downwards, but one thing most agree on: it will turn around in 2018, says macro analyst Ann Kristin Aure at Bonum to Estate Nyheter.
Photo: Finansavisen/Magnus Rørvik Skjølberg.
Analyst believes the correction is short term.
Housing prices have taken a significant hit since their peak in April.
The largest analytical environments have repeatedly adjusted their forecasts downwards, but one thing most agree on: it will turn around in 2018, says macro analyst Ann Kristin Aure at Bonum to Estate Nyheter.
Short term correction
She points out to the website that the supply of unsold existing homes in Oslo remains high, but lower than the peak earlier this autumn.
At the same time, activity in the market is good, even though it generally takes somewhat longer to sell. Since the summer (from July to November), according to Eiendom Norge, slightly more existing homes have been sold in Oslo than in the same period last year. This indicates a well-functioning market, and that the price decline we are seeing is most likely a short term price correction, Aure continues.
This reduces the risk of a sudden and more pronounced decline further ahead, she adds.
Older adults are buying
Several estate agents Bonum has spoken with point out, according to Estate, that older adults are the major housing buyers now.
Whilst the mortgage regulation limits first-time buyers, the sentiment amongst those in between, who are looking to buy larger and more expensive homes, is somewhat cautious.
Aure points out, according to the website, that the youngest buyers will return if the mortgage regulation is abolished or adjusted.
The regulation is temporary, and in principle expires on 30 June 2018. The Ministry of Finance recently asked Finanstilsynet to review the regulation by March 2018.
