-I think most people have realized that housing rents have reached their lowest point, Nejra Macic said. Economists see some signs that house price growth is slowing.
-Macic, chief economist of the Forecast Center, said that we believe that extreme demand in the real estate market will eventually disappear.
-Yes, we also believe that inflation will slow down, said Kari Due-Andresen, chief economist at Handelsbanken.
According to a monthly report by the brokerage industry, house prices in Norway rose by 3.2% in January and 2.0% in February.
Most house price increases in Norway usually occur at the beginning of each calendar year.
However, so far, inflation in 2021 has been exceptionally strong. Record low corona interest rates and scarce housing supply have been blamed for this.
But how long can the real estate market remain explosive?
We can get the answer on Thursday. Then, Eiendom Norge provided housing statistics for March.
-Macic of the Forecast Center has long been regarded as one of the country’s leading real estate analysts. He said that we believe that housing price growth will be contained.
She saw several reasons why the sharp price increase would not last.
The chief economist pointed out that, first of all, March is a traditionally weak housing month.
In the past ten years, the market has been weaker than January and February. McSic said that it is completely normal that inflation will slow down now.
Second, mortgages seem to be much more expensive than initially estimated:
Although the central bank previously planned to keep the key interest rate unchanged at a historical low of zero by 2022, the Norges Bank stated on March 18 that it is likely to raise interest rates this fall-perhaps as early as September.