Housing prices will increase sharply, DNB Nor said in a new report.
View does not help with the price
Housing prices will continue to rise in the coming years, according to DNB Nor Markets’ daily economic report “Economic Outlook 2/08”, writes Dagens Næringsliv. Even though figures from Norsk Eiendomsmeglerforbund show a 3 per cent decline in prices from June to January, the recent increase in recent years shows that there is again the basis for a new increase this year, experts in DNB Nor believe.
Due to increased relocation, new loan schemes and increased housing standards, it is difficult to conclude that house prices are artificially high, according to analysts in DnB Nor.
They say house prices are well rooted in fundamentals, but price inflation is going down from previous years.
– This is the basis for a new rise in house prices this year, according to the report.
– On average, we expect prices in 2008 to remain at the same level as last year. Longer ahead, we expect that housing prices will be more in line with revenue growth, writes the brokerage house.
Thus, a housing worth now NOK 2 million will rise to NOK 2,265 million in three years, says Dagens Næringsliv.
With regard to interest rates, DnB Nor Markets assumes that the peak is reached on Wednesday. Then it will drop down.
– If Norges Bank raises its interest on Wednesday, it will be the last interest rate increase for a long time, the report says.