Norwegian housing prices fall further in June

Norwegian housing prices dropped again in June. Norway’s housing prices dropped 0.7 percent sequentially on a seasonally adjusted basis in June after falling 0.6 percent in May. The regional figures continue to show huge differences between the different regions. In Oslo, prices dropped by almost 2.1 percent on a seasonally adjusted basis.

The fall in Oslo appears to impact Akershus where prices dropped 0.6 percent seasonally adjusted. Bergen has also recorded a drop in prices, while prices in Hordaland dropped 0.7 percent. Apart from these three counties, prices remained flat or they rose in all other counties.

Declining housing prices evidently argues for less concern about excessive growth in debt and financial imbalances in central bank, and as such it is an argument for a later hike all else equal.

“We must however see a lasting and widespread downturn before Norges Bank starts to fear the negative effects on growth from the housing market and consequently before it affects rates significantly”, stated Nordea Bank in a research report.

On a year-on-year basis, housing prices growth dropped faster than anticipated.