Norway housing prices extend gains, adding to rate pressure
-
Loading... - larsen maja
- 11 Apr 2023
- 74 Views
- 0 Like
- 0 Comment
HOME prices in Norway increased for the fourth consecutive month in March, in a sign that the housing market is stronger than expected by the central bank as it tries to rein in inflation.
Data from Real Estate Norway on Wednesday (Apr 5) showed that home prices rose 0.5 per cent last month from February on a seasonally-adjusted basis, after a revised 0.4 per cent gain in February. Norges Bank had not expected an increase after adjusting for seasonality.
The central bank is using more interest-rate hikes to slow price growth before it becomes entrenched; at the same time, it is trying to minimise the impact of such hikes on the real economy.
Marius Gonsholt Hov, Svenska Handelsbanken’s chief economist for Norway, said: “Even though we expect Norges Bank to continue to push its key policy rate all the way up to 3.75 per cent – implying further rate hikes in May, June and September – we maintain our view of a soft landing for the housing market this year.”
Norway’s housing market also contrasts with those of its Scandinavian neighbours. Sweden has become one of the frontrunners of the global housing cooldown, with Danske Bank expecting its peak-to-trough price decline to swell to 25 per cent from the current level of about 12 per cent. In Denmark, home prices have fallen by about 10 per cent. Read More…
