Overview of the development of the housing market in Norway.
Housing prices were by most experts expected to reach "all time high" in 2013 and they got right, but perhaps not in the way they had imagined. IMF believed that prices are already at the end of 2012 was between 15 and 20% overvalued compared to the prices in the EU, but they attracted Despite this expected further strong growth in the first months of 2013.
This proved to be very accurate as the prices actually rose sharply in the first months of 2013, which surprised many Norwegian experts was that there would be such a sharp correction down the rest of the year at the time of writing (mid December 2013) is just as likely that we will see an overall slight decrease of prices edged up. Still, ie housing in Norway still powerful over priced and is characterized by many as a bubble.
The main reason for this bubble can be attributed to the very strong economic development Norway has experienced in recent years. The economic development is impressive and is still strong despite some signs of weakness. Norway, for example, the third lowest unemployment rate in the world.
Norway becomes richer and richer and most people feel the same for his own private finances.
Trends in house prices in Norway
Prices have in the last two last decades varied a great deal, but generally had a strong upward trend.
Since the early 1990s, house prices have risen significantly in six different time periods:
- From the first quarter to the fourth quarter of 1994, the average increase was 13.3%.
- From the first quarter of 1996 to the third quarter of 1998, the average increase of 12%.
- From the third quarter 1999 to third quarter 2000, the growth rate was 16.8%.
- From the second quarter of 2004 to the fourth quarter of that year, the growth was 10.4%.
- From the first quarter of 2006 to the third quarter of 2007, growth was 14%.
- And from the fourth quarter 2009 to first quarter of 2010, growth was 11.2%.
Until this fall, it has only been three periods of decline since the early 1990s:
- From the first quarter of 1993 to the second quarter of the same year, house prices fell by 3.2%.
- In the second quarter of 2003 were 1% fall in the market.
- And finally from the third quarter of 2008 to the second quarter of 2009 was 4% fall in house prices.
At the beginning of 2013 diverge experts' predictions about the future housing prices sharply from those that predict a decent increase next year to those who save an imminent market crash.
Frank Wallem is a businessman and investor based in Vestfold. He is an avid blogger and also use social media actively.
