Thursday , October 21 2021

The former Director of Housing again believes in bidding for prices in 2020


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According to Baard Schumann, two factors will lead to a new rise in housing prices in 2020.

"I think that by 2020 we will achieve a ten-percent increase in housing prices in Oslo, perhaps even more," says Baard Schumann, Selvaag Housing Director, Friday's edition of Dagens Næringsliv (DN).

It is therefore much lighter than the forecast proposed on Tuesday, where the socio-economic analysis predicts that housing prices will increase by only 5.5% in Oslo in the next three years.

– Significantly less homes

Even Schumann points to several factors that the price can do in the capital.

– The interest rate path to the Norges bank is too aggressive. Yes, interest rates will rise, but wage growth will outweigh the rate hike. This, combined with a low level of performance, will raise prices – he says.

Schumann estimates that the number of dwellings completed in 2020 will be too small to meet high demand.

The DN tells us how we will get "dramatically fewer homes" completed in 2020. Despite the fact that Oslo has a large number of houses with regulations, only 8,000-9000 homes can be built in the next few years, Schumann believes.

Read also: Home prices fell by 0.6 percent in November

– The most dangerous thing I've seen

An even more different view is taken by chief economist Jan Ludvig Andreassen. He opposes the rest of analysts, predicting a sharp fall in property prices over the next few years.

At the conference of the Norwegian Real Estate Market Association he distinguished himself with a distinctive headline.

"Today's housing market is the most dangerous thing I've ever seen in my life," said the chief economist of the Eika Group from the scene, according to DN.

He not only thinks that interest rates will not rise, as opposed to Norges Bank, but Andreassen also points to the population.

RAKE MOTION: Chief economist Jan Ludvig Andreassen stands out with housing market predictions.

Terje Pedersen
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The chief economist points out that birth rates in Norway, like in the rest of Europe, are falling.

The next point he made was that without immigration, Norway "stopped Norway".

Andreassen, however, has no definite answer to the question of when housing prices will fall, but rather worries about how long lines are lengthening.

Read also: Property Norway: House prices increased by 0.1 percent in September 2018

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