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Norway's Housing Market Downturn Gathers Pace Amid Bubble Fears

  • Prices plunge 3.1% in Oslo in June as sellers rush to unload
  • Houses out for sale increased by 17% from a year earlier
Pedestrians in Oslo

Pedestrians in Oslo

Photographer: Krister Soerboe/Bloomberg
Updated on

One of the world’s hottest housing markets is now cooling fast, sparking concern that a bubble is bursting after the rapid price increases over the past years.

Average nationwide house prices fell seasonally adjusted 0.7 percent in June, declining for a second month, Real Estate Norway, Eiendomsverdi and said Wednesday in Oslo. Annual nationwide gains slowed to 6.3 percent from 8.3 percent in May and to 11.5 percent from 16.5 percent in Oslo. In the month, prices in the capital plunged 3.1 percent.