Strong house price hikes in Norway
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Is Norway in a housing bubble? Robert Shiller thinks so. The International Monetary Fund’s research has suggested that Norwegian house prices may be 15% to 20% overvalued. Yet Norway’s house price rises are still going strong. Norway’s house price index was up 6.7% during 2012 (5.4% when adjusted for inflation), according to Statistics Norway.
Why so? Because Norwegians are getting richer by the day. Norway’s strong economy is predicted to expand by 2.8% in 2013. Wages are expected to rise by around 3.9% in 2013, and 4.6% in 2014. Unemployment is only 3.5%, and inflation was 1.3% in January 2013.
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