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NORWAY: January House Prices Well Above Norges Bank Forecast

NORWAY

Norwegian secondary house prices rose a notable 1.4% M/M SA in January, up from 1.0% in December and well above Norges Bank’s 0.5% M/M projection in the December MPR. All else equal, this will be a hawkish input into Norges Bank’s March rate path, but is unlikely to deter a well-signalled 25bp cut.

  • Low supply of new built homes since the pandemic has shifted demand towards existing homes, and continues to be a key driver of existing home price rises.
  • Eiendom Norge also point to “less uncertainty about the household economy going forward” alongside “moderate relief in lending regulations”.
  • There were record numbers of home listings and sales in January, according to the press release.
  • There was little reaction in NOK to the data, with NOKSEK extending session lows at typing amid continued SEK strength, now 0.3% lower today, 

 

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Norwegian secondary house prices rose a notable 1.4% M/M SA in January, up from 1.0% in December and well above Norges Bank’s 0.5% M/M projection in the December MPR. All else equal, this will be a hawkish input into Norges Bank’s March rate path, but is unlikely to deter a well-signalled 25bp cut.

  • Low supply of new built homes since the pandemic has shifted demand towards existing homes, and continues to be a key driver of existing home price rises.
  • Eiendom Norge also point to “less uncertainty about the household economy going forward” alongside “moderate relief in lending regulations”.
  • There were record numbers of home listings and sales in January, according to the press release.
  • There was little reaction in NOK to the data, with NOKSEK extending session lows at typing amid continued SEK strength, now 0.3% lower today, 

 

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