Norwegian housing prices rise in October, likely to fall slightly in future

Norway’s housing prices rose in October, contrary to the trend. On a seasonally adjusted basis, housing prices rose 0.4 percent sequentially in the month. Nordea Bank had expected a decline of 0.5 percent, while the Norges Bank had expected no change in housing prices.

Region wise, the picture was as usual hard to square with the overall scenario. Seasonally adjusted, housing prices in Oslo dropped sharply by 1.2 percent. Most of the other big cities also recorded a drop in prices. In the prior month, Oslo had surprisingly recorded slight rise in prices. However, prices are expected fall further in the capital city.

Overall, the report was better than expected, but it is not convincing that the downward trend is over. Still the October report is consistent with the overall picture. Prices are likely to fall slightly further, but a solid downturn with considerable effects on the macroeconomic outlook is not very likely, stated Nordea Bank.

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