Oslo's housing market saw prices decline last month. Used home prices in the capital fell 1.3 percent in October according to cooperative housing association data.
The drop follows normal seasonal patterns where prices typically decrease during autumn. This year's decline was slightly larger than the average October decrease over the past decade.
Obos chief economist Sissel Monsvold noted the seasonal trend in a statement. 'The decline in Oslo this year was somewhat larger than the October average over the last ten years,' she said.
September had shown an even steeper 2 percent decrease for Oslo housing prices. The statistics cover approximately one quarter of the capital's housing market.
Nationwide, housing prices decreased 0.8 percent in October. The data comes as economists watch how interest rate cuts will affect the market.
Norway's central bank reduced interest rates in both June and September. The key policy rate now stands at 4 percent, making home loans more affordable.
However, the central bank has signaled fewer future rate cuts than previously expected. This tempered expectations for stronger price growth.
Monsvold explained the competing factors affecting the market. 'The September rate cut alone would suggest increased housing demand ahead. But the central bank's raised rate path and signals of fewer cuts in coming years have moderated price expectations.'
High housing supply also contributed to the price decline. Many landlords have chosen to sell properties, increasing available homes. This has put downward pressure on prices.
Oslo has shown weaker price growth than other major Norwegian cities this year. Despite recent declines, prices have still increased 5 percent year-to-date.
October saw slightly more home sales than the same period last year. Transaction levels reached their highest October mark since 2020.
Market balance may improve in the longer term due to construction trends. Low housing construction, particularly in Oslo, means fewer completed homes entering the market.
Monsvold pointed to several positive factors for future prices. 'Two rate cuts this year, signals of some future cuts, real wage growth and a strong labor market suggest somewhat stronger price development than normal in the final months this year and rising housing prices in 2026.'
The broader housing market data for October will be released later this week. Norway's central bank will announce its next interest rate decision on Thursday, though no changes are expected.
Market observers note that Oslo's price adjustment reflects both seasonal patterns and changing economic conditions. The combination of interest rate movements and supply dynamics creates a complex landscape for home buyers and sellers.