Categorized | International

Norway’s Housing Market May Take Serious Hit

Please Share!

Norway may just be the next country to see its residential real estate market face a massive decline in pricing. Economists are watching the market in Norway very closely after reports have indicated that debt levels in the country’s housing market are rising.

 

Household debt in Norway has risen at unsustainable levels over the past year, as people are borrowing under the belief that interest rates will remain at their current low levels.

 

Norway has, for the most part, avoided much of the international economic troubles faced by so many other countries around the rest of the world. Their good fortunate, however, may be what causes the economy to crash in the future in corrective measures are not soon taken. The current international economic struggles have caused many to believe that interest rates will remain low for quite some time. In addition, housing prices have risen astronomically, causing people to borrow even more money.

 

The nation has done fairly well in recent years, thanks to its status as one of the top ten exporters of oil in the world. However, policy makers are having a hard time figuring out what to do with respect to the potential housing bubble that is looking more likely everyday.

 

The current debt levels are considered to be very dangerous, and there is a tremendous fear that the current good times could come crashing down in the near future.

 

There has been no indication as of yet regarding how the Norwegian government will address the current debt issue, though economists warn that action must be taken now to avoid a disastrous situation in the future.

Please Share!

About Nancy Raven

Nancy is the main writer for the International section of the website. Sometimes she also helps Drew out on the Finance/Mortgage section as well.

Leave a Reply

Twitter Chat