Friday , August 12 2022

Former Housing Director once again believes in price bidding 2020


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According to Baard Schumann, two factors will lead to a new housing price boost in 2020.

"I think we will get a ten percent rise in housing prices in Oslo in 2020. Perhaps even more," says Selvaag Housing Manager Baard Schumann, Friday's edition of Dagens Næringsliv (DN).

He is thus much easier than the proposed forecast on Tuesday, where socio-economic analysis expects housing prices to rise by only 5.5 per cent in Oslo over the next three years.

– Dramatically fewer homes

Schumann also points to several factors that the price can make a pant in the capital.

"The interest rate path to Norges Bank is too aggressive. Yes, interest rates rise, but wage increases exceed interest rate hikes. This, combined with low completion, will raise prices, he says.

Schumann estimates that the number of homes completed in 2020 will be too low to meet the high demand.

To DN, he tells us how we will get "dramatically fewer homes" completed in 2020. Although Oslo has a large number of regulated housing, only 8,000-9,000 homes can be built in the next few years, Schumann believes.

Read also: Housing prices fell 0.6 percent in November

– The most dangerous thing I've seen

An even more different opinion, Chief Economist Jan Ludvig Andreassen. He goes against other analysts by predicting a sharp fall in house prices over the next few years.

At the Norwegian Property Association's conference, he described himself with his excellent headline.

"Today's housing market is the most dangerous thing I have seen in my life," says the Eika Group chief economist from the stage, according to DN.

Not only does he think that interest rates do not rise, as opposed to Norges Bank, but Andreassen also points to the population.

RAKE MOTION: Chief economist Jan Ludvig Andreassen explains his forecasts for the housing market.

Terje Pedersen
NTB scanpix

The chief economist points out that birth rates in Norway, together with the rest of Europe, fall.

Another thing he did was that without the immigration, "Norway stopped Norway".

Andreassen, however, has no clear answer to when housing prices will fall, he is rather concerned about how long lines extend.

Read also: Real Estate Norway: Housing prices rose 0.1 per cent in September 2018

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