NORWAY
Norwegian existing house prices rose 0.4% M/M SA in November, two tenths above Norges Bank’s September MPR projection. All else equal, the trajectory of existing home prices since September should have a small upward effect on the December MPR rate path. On a 3m/3m basis, house price growth ticked up to 1.0% (vs 0.9% in October, 0.8% in September).
- Eiendom Norge notes that “the large sales volume we have seen throughout 2024 has continued in November, and far more homes have been sold so far this year than at the same time in 2022 and 2023. We expect the strong volume in the second-hand housing market to continue in the future”.
- New home supply has been restricted by high construction costs and interest rates, and Norges Bank expects prices for existing homes to continue rising "on the back of a low supply of new homes, increased household purchasing power and lower residential mortgage rates".
- This morning, the Norwegian Finance ministry announced plans to lower to equity requirements for mortgages to 10% from 15%, in order to improve accessibility for first-time buyers. This means the loan-to-value ratio cap has been raised to 90% from 85% prior (in line with Norges Bank recommendations in the H2 2024 Financial Stability Report).
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