Norway's house prices set for further growth -real estate lobby | Pound Ridge Real Estate
Norwegian house prices rose more quickly than expected in October and growth will likely accelerate over the rest of the year, even as household debt levels remain among the highest in Europe, a real estate lobby group said on Wednesday.
House prices rose by 5.3 percent year-on-year in October, up from 3.6 percent in September with seasonally adjusted prices up by 0.9 percent on the month, hitting all-time-highs in October, Real Estate Norway said.
"We're somewhat surprised that we rise above the five percent level. We'll also see a further increase in November and maybe in December," Real Estate Norway Chief Executive Christian Dreyer said, adding it was "quite likely" growth would hit 6 percent.
Norway's banking regulator, worried that strong house price growth will further boost household indebtedness and hurt the economy, has warned that banks may face new capital buffer requirements if the development continues.
At the start of 2014, Real Estate Norway said it expected prices to drop 1-3 percent this year, but the market rebounded as mortgage rates fell and banks eased lending requirements, leading the association by mid-year to abandon its projection for a decline.
"It's not healthy if prices continue to rise more quickly than income developments allow for," Real Estate Norway Chairman Leif Laugen said. "We share the bank regulator's worries."
read more....
http://in.reuters.com/article/2014/11/05/norway-houseprices-idINL6N0SV2QC20141105
House prices rose by 5.3 percent year-on-year in October, up from 3.6 percent in September with seasonally adjusted prices up by 0.9 percent on the month, hitting all-time-highs in October, Real Estate Norway said.
"We're somewhat surprised that we rise above the five percent level. We'll also see a further increase in November and maybe in December," Real Estate Norway Chief Executive Christian Dreyer said, adding it was "quite likely" growth would hit 6 percent.
Norway's banking regulator, worried that strong house price growth will further boost household indebtedness and hurt the economy, has warned that banks may face new capital buffer requirements if the development continues.
At the start of 2014, Real Estate Norway said it expected prices to drop 1-3 percent this year, but the market rebounded as mortgage rates fell and banks eased lending requirements, leading the association by mid-year to abandon its projection for a decline.
"It's not healthy if prices continue to rise more quickly than income developments allow for," Real Estate Norway Chairman Leif Laugen said. "We share the bank regulator's worries."
read more....
http://in.reuters.com/article/2014/11/05/norway-houseprices-idINL6N0SV2QC20141105
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