Moderate Decline in Norway Housing Prices
The head of Real Estate Norway said that the price of Norwegian homes may fall in the coming months after years of rapid growth. Norwegian seasonally adjusted housing prices were unchanged in April compared to March, and the year-on-year growth rate eased to 10.7 % from 11.7 %, the real estate association said earlier. "If you ask me what is the most probable outcome for the rest of the year, then I expect a flat or moderate price decline," Real Estate Norway Chief Executive Christian Dreyer told a news conference. The capital region, where prices have risen by some 40 percent in the last two years, was particularly vulnerable to a setback, he warned. "There is also a slower pace in other big cities and in the rest of country," he added. The Norwegian government at the start of the year imposed tougher banking regulations to curb mortgage lending an help limit the growth in property prices. In addition, housing starts have risen significantly.
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