House Price Index (HPI) y/y

Norway Housing Price Index (HPI) y/y reflects a change in the average value of residential properties in the given month compared to the same month of the previous year. Information on residential property transactions is collected from state land registries and statistics from the largest Norwegian mortgage lenders. The collected data cover about 70% of the residential property market turnover.

The index measures the prices paid by individuals for purchased housing. HPI reflects the dynamics of second-hand housing prices across the country.

The housing market plays an important role in the Norwegian economy. The rise in house prices, among other effects, has a significant impact on the growth of household wealth and, consequently, on the purchases of goods and services. Such purchases account for more than half of the Norway mainland GDP. Housing price trends are also important for the development of housing investments. In addition, the dynamics of house prices affects the overall inflation and financial stability, and thus it may affect interest rates set by Norges Bank.

Economists analyze the indicator to assess the housing market activity. It also serves as an analytical tool for measuring changes in mortgage rates, evaluating availability of houses and assessing the general inflation in the country. The rise in housing prices is seen as a favorable factor for the country's economy, since it indicates national currency inflation growth. Therefore, growing readings can be seen as positive for the Norwegian krone quotes.