OSLO May 4 The price of Norwegian homes may
fall in the coming months after years of rapid growth, the head
of Real Estate Norway said on Thursday.
Norwegian seasonally adjusted housing prices were unchanged
in April compared to March, and the year-on-year growth rate
eased to 10.7 percent from 11.7 percent, the real estate
association said earlier.
"If you ask me what is the most probable outcome for the
rest of the year, then I expect a flat or moderate price
decline," Real Estate Norway Chief Executive Christian Dreyer
told a news conference.
The capital region, where prices have risen by some 40
percent in the last two years, was particularly vulnerable to a
setback, he warned.
"There is also a slower pace in other big cities and in the
rest of country," he added.
The Norwegian government at the start of the year imposed
tougher banking regulations to curb mortgage lending an help
limit the growth in property prices. In addition, housing starts
have risen significantly.
(Reporting by Ole Petter Skonnord, editing by Terje Solsvik)