Oslo housing market shifts toward buyers as unsold homes hit record highs

The housing market in Oslo is experiencing a significant shift toward a buyers' market. The number of unsold homes in the capital has increased by 40 percent compared to September last year, and the average time to sell a property has risen to nearly 40 days—a duration not seen since the 2008 financial crisis.

Experts attribute this trend to higher interest rates and an increased housing supply, which are dampening price pressures. While national housing prices have risen by 4.9 percent so far this year, price growth in Oslo has already turned negative. Analysts suggest that households are increasingly adjusting to a period of sustained high interest rates.

The market conditions are creating significant barriers for first-time buyers. Current data indicates that young people now require approximately 6.6 times their annual income to purchase their first home, a sharp increase from previous decades when the requirement was closer to two annual salaries. This disparity is exacerbated by high construction costs and the rising cost of financing.