Norway house prices up 5% year-on-year, fastest growth in 3 years (updated)

Selvaag Bolig ASA

05/08/2020 10:16

(Adds detail, currency, analyst)
    OSLO, Aug 5 (Reuters) - Norwegian seasonally adjusted
housing prices rose 0.9% between June and July and is up 5% for
the last 12 months, a real estate industry association said in a
monthly report on Wednesday.
    It was the fastest annual growth since June 2017, driven by
cheaper mortage rates as the Norwegian central bank cut its key
policy rate to a record low zero percent during the coronavirus
outbreak.
    While Norges Bank has said it aims to keep rates on hold
until the second half of 2022, a sustained rally in housing
prices could trigger an earlier tightening, Nordea Markets wrote
in a note to clients.
    Still, the lift in prices in recent months will most likely
subside in the time to come as the effects of interest rate cuts
wear off, Real Estate Norway said.
    Unadjusted prices increased by 0.4% in July from June. The
housing data was compiled by Real Estate Norway, FINN and
Eiendomsverdi.
    Norway's crown currency strengthened slightly against the
euro, hitting 10.7036 at 0910 GMT versus 10.7120 earlier.

 (Reporting by Terje Solsvik, editing by Gwladys Fouche)
 ((terje.solsvik@thomsonreuters.com; +47 918 666 70))