Tuesday, December 9, 2014

- House prices explode if we do not change up – HegnarOnline

- House prices explode if we do not change up – HegnarOnline

Number of Homebuilders Association, prepared by Prognosesenteret shows that sales activity continued at a good and relatively high level in November, and the negative difference from last year is now in the process of being acquired.

Housing in November is historically weak, but still an increase from last November.

– The positive sales trend we have seen in the fall continues in November, said Peter Jaeger, CEO of Homebuilders Association, precisely at a press conference in connection with the presentation of NHO quarterly.

Sales by 11 months of 2014 fell 5.1 percent against the same period last year. Sales levels in November alone rose 38 percent from last November.

Sales growth applies to all types of housing, but apartment sales shows according Jaeger strong development after a weak start to the year.

– As a consequence of weak sales towards the end of last year and the beginning of 2014 , we see that housing starts are still lagging behind last year. November alone albeit a growth of 10 per cent from November last year, but the overall housing starts so far this year is 13 percent behind 2013 continues Jaeger.

– Explosive in Oslo region
According to the director’s failure in apartment construction clearly the most important reason for the weak performance.

– We particularly Note that sales in Rogaland has fallen 16 percent so far this year. We are excited how the cutbacks in the oil industry will affect sales, says Jaeger.

He notes that housing demand is 37,000 new homes every year, but we did not manage to build enough.

– With the current housing construction will this year we initiate under 25,000 new homes. The greatest challenges lie in pressure areas around the big cities, but the greatest challenges still in Oslo, Akershus, Østfold and Buskerud, said Jaeger.

In Oslo, for example needed over 6,000 homes a year until 2020, while annual rate of housing construction by November 2014 of just over 2,000 – that the deficit of approximately 4,000 homes per year.

– Is there any wonder why housing prices do not fall in Oslo? asked the Director of Housing Producers.

– It built 8,000 fewer homes in the Oslo region than our calculations show. Housing prices will explode if we do not get up to speed on the construction here, said Jaeger on.

– Guarantee Policy a brake
He also drew the warranty policy is a brake for housing construction .

All contractors who build homes must set a financial guarantee to the customer. The guarantee shall secure the client in case the contractor goes bankrupt, so he gets corrected if necessary. Errors and omissions or completed project.

35 percent of the members of Homebuilders Association has claimed Jaeger been having problems with a guarantee in relation to Housing Construction Act, and 60 percent expect the warranty will be difficult to make in the future.

Jaeger advocates an insurance as a substitute for unconditional warranty, which protects consumers in the same way as today.

– The company pays a insurance which is seen as a cost, and does not require versus security. Companies will thus freeing up capital that can be invested in new housing projects, said the director.

The entire presentation here.

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