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OSLO, July 5 (Reuters) - Norwegian seasonally adjusted housing prices fell by 0.7 percent in June from May, the second consecutive monthly decline as the cost of buying a home continues to ease from recent record highs, a real estate industry association said on Wednesday.
On a year-on-year basis prices rose by 6.3 percent in June, below the 8.3 percent seen in May and down from 13 percent seen as late as February, Real Estate Norway said.
Tighter mortgage regulations, lower population growth and a boom in construction, flooding the market with new homes, have all contributed to the recent market turnaround.
The association now believes the average price of a Norwegian home will grow by 5-6 percent in 2017, below a forecast made last December of a 9-11 percent increase, it added.
Unadjusted prices fell by 1.6 percent in June from May.
A decline in housing prices will likely contribute to keeping the central bank’s key policy interest rate at record lows, most economists say. The housing data was compiled by Real Estate Norway, FINN and Eiendomsverdi. (Reporting by Ole Petter Skonnord, editing by Terje Solsvik)