Statistics Norway (SSB) expects the weak development in housing prices to continue this year, and throughout 2018 before flattening out.
Housing prices predicted to continue falling for a while to come
According to agency forecasts for the next few years, by 2020, Statistics Norway expects house prices to remain at about the same level as they were at in 2016.
The low interest rate, and expected fall in housing investment are contributing to the decline in house prices,’ said the agency, who today presented their view of the prospects for Norwegian and international economics over the next few years.
Statistics Norway wrote that the decrease that has been seen in the housing market must be seen in conjunction with the record high-level of housing construction during recent years, changes to mortgage regulations, and not least, the high level prices had shot up to.
During the past three years, housing prices had increased by 20%.