Which house do you think is easiest to sell?
To take the question first as last. Which house is the easiest to sell? Head of Tormod Boldvik in Norway’s Real Estate Brokerage Association (NEF) believes the house of NOK 42 million on Nesøya is easier to sell than a refurbishment at Ballangen for NOK 80,000.
– Having said that, the villa in Nesøya is not easily sold, but the logic is that expensive houses in attractive areas have a higher turnover rate than houses in the districts. Although 42 million is a lot of money … he explains.
The house at Ballangen is otherwise virtually condemnable, according to the prospectus. Comparing the homes is also not a point in itself, but illustrates the huge price differences in the market.
And it provides the basis for reflection: For how much are you willing to pay for a four-walled house? How far do you stretch the knit in a heated market? Is the area so attractive that it’s worth paying millions?
Raise the look
– It’s a charity example, but on a problem that I think is exciting. I urge people to lift their eyes. Of course, you can not live too far away from work, but if you work in Oslo, places like Lillestrom, Drammen and Moss are good examples of areas where you get a lot of money, says Boldvik.
Housing prices are still reaching new heights – and continue to rise. Residential housing prices are 7.0 per cent higher today than in October 2011. The average delivery time for second homes in October was 24 days and is faster than at the same time last year. Sales are fastest in Oslo and Stavanger, with average mediation time only 14 days.
Think of growth
Economic turmoil in international and falling housing prices in most European countries: Norwegians have very little faith in falling house prices here. 9 out of 10 believe housing prices will rise or remain unchanged for the next year. It shows fresh figures from the Household Survey, which Norstat has recently conducted for FNO. Only eight percent of respondents believe housing prices will fall next year. Six out of ten think they will rise, while three out of ten believe in unchanged housing prices.
Both banks and home buyers must be prepared for events that can lead to a fall in house prices, also in Norway, emphasizes CEO Idar Kreutzers in the Financial Industry Association.
You should also not forget that for everyone who bought housing in the period January 2007 to May 2008, the home value was lower 12 months later. The greatest was the fall in house prices in the period November 2007 to the same month the following year. Then the house price fell by ten percent, and it took almost two years before it was back at the November 2007 level.
Unrest in Europe
The worst thing that can happen is that a housing price drop consumes all or a large part of the equity on a later sale. It will make it difficult to enter the housing market again, says Kreutzer, pointing to rising economic turmoil in Europe, oil prices and interest rate hikes can be events that can adversely affect housing prices.
Manager Tormod Boldvik in Norway’s Real Estate Brokerage will also discourage ordinary people from speculating on housing purchases at the time we are entering. In the short term, it is not expected that you will earn anything special. He believes in a moderate price increase next year.
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