Norway's housing market downturn gathers pace amid bubble fears

Oslo

ONE of the world's hottest housing markets is now cooling fast, sparking concern that a bubble is bursting after the rapid price increases over the last few years.

Average nationwide house prices fell seasonally-adjusted 0.7 per cent in June, declining for a second month, Real Estate Norway, Eiendomsverdi and Finn.no said on Wednesday in Oslo. Annual nationwide gains slowed to 6.3 per cent from 8.3 per cent in May and to 11.5 per cent from 16.5 per cent in Oslo. In the month, prices in the capital plunged 3.1 per cent.