Sell before you buy, consult expert advice.
The brokerage’s recent housing price statistics show laber price developments. Prices for single-family homes were 1.8 per cent higher than in October 2012. Prices for shared dwellings were 2.6 per cent higher and prices for apartments were 0.8 per cent higher than in October 2012.
In other words, the price development of apartments has almost stood still this year.
– How much does the psychological impact have on the housing market at the moment?
– It often affects the market in the short term, but the fundamental drivers in the economy over time over time psychology. We saw that in 2009, where the housing market turned out much faster than many expected. The market is undoubtedly largely influenced by psychology now, says Christian Vammervold Dreyer, Managing Director of the Real Estate Agency Association (Eff).
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Dreyer believes the reason that apartments have had the weakest development is that the apartment market has had the greatest impact on newly built homes. It has made the supply side of apartments great when the market turns. This will eventually change when housing construction declines, as we see the contour of now.
– Should people be careful about buying a new home before selling the second home?
– I think there is a high probability that the story will tell us that it was a good advice to buy housing these days. However, many years ago, we had such an insecure housing market. But if you are in a depressed situation economically, then insecurity is so big that I would advise to sell first, says Dreyer.
Chief economist Jan L. Andreassen in the Eika Group believes the psychological factor is important. In some haystacks, psychology, government crisis and media play can affect prices. In the long run, however, there are fundamental factors such as new construction, population figures, income, interest rates and taxes that are crucial, he emphasizes.
– The price of apartments has almost not grown in a year. Is this this type of housing that will be bad for the future?
-Well, there are too many similar and expensive apartments at the same time. Some places, like in Kristiansand, have been built a little too much, just too great – at the same time. Other places where it has not been built so much lately, like Tromsø, prices will continue to rise if the economy grows as normal.
Andreassen believes falling residential housing will continue the current recession throughout 2014. Housing investment can fall by as much as 30 billion kroner next year. On the other hand, you can get a new discussion on how to build better and cheaper. Perhaps we even get an easier framework with time and time?
– Do you think people should be careful about buying new homes before selling?
– Yes, everyone should be careful. I myself think housing policy with unnecessarily high interest rates, strict mortgage regulations and worthless demands on building engineering standards are lost. Nevertheless, I respect the reality, and it may get worse before people turn around and lead a wise and future-oriented housing policy.
Dreyer thinks the most important driver is the tightening of credit practice, both because the banks have reduced lending capacity and will through reduced capital requirements. In addition, the capital requirement comes to buyers who have led to less interest in the smallest apartments. This gives a domino effect in reduced interest also on the other types of housing. In addition, strong growth over time has made homes generally expensive in Norway. Many people find that “enough is enough”.
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