|
May 22, 2012 6:01 AM GMT+0800 Norway isn t in the grip of a housing bubble and a shortage ofsupply in the property market will prevent prices from falling,said Erna Solberg, the leader of the Conservative Party and thefront-runner to take over as prime minister in next year selection. I argue against a housing bubble because a housing bubble is aninflux of prices without demand; in Norway it s demand that s thebiggest reason, Solberg, 51, said yesterday in an interview inOslo. I don t think house prices will fall. The comments signal a potential Conservative-led government won tstep in with measures to cool the housing market that thecountry s financial regulator has warned is the biggest threat tothe economy. Near-record low interest rates and fallingunemployment boosted home prices about 27 percent since 2008,according to the Norwegian Real Estate Brokers Association. Robert Shiller, the co-creator of the S&P/Case-Shillerhome-price index who predicted the U.S. subprime mortgage crash,this year warned that Norwegian policy makers should startworrying now and that the market may be in a bubble. TheFinancial Supervisory Authority has warned that house prices mayfall markedly, threatening substantial knock-on effects.The regulator introduced guidelines last year that limit mortgagesto 85 percent of the value of the home. Not Taxation Norway s central bank has emphasized that it is reluctant to widenthe interest rate gap to Europe even as house prices have reachedrecords while acknowledging last week that housing marketdevelopments and household debt may become a source of instability in the Norwegian economy in the longer term. Governor Oeystein Olsen said earlier this month that guiding houseprices aren t part of his mandate. There is a big problem connected to housing prices in Norway, Solberg said. The answer to that is not more taxation. If youwant to decrease housing costs in Norway, the most important thingis to build more. Solberg, who has lead the Conservatives since 2004 and overseen asurge in support over the past six months, will lead the oppositionagainst Prime Minister Jens Stoltenberg in the parliamentaryelections in September 2013. Backing for her party beat Stoltenberg s Labor party in a May 12Norfakta poll, securing 32.1 percent of the votes compared withLabor s 29.5 percent. A survey for newspaper Aftenposten thismonth showed that 44 percent wanted Solberg to be prime minister,while 46 percent wanted Stoltenberg to continue. More Houses The biggest issue for all governments the next 10 years is tobuild more public transport in the larger cities and cut down onplanning processes for more houses, Solberg said. Solberg said a Conservative-led government will focus on cuttingthe wealth and inheritance taxes while seeking to add taxincentives for people to work longer. She would stick to a rulethat limits spending of oil revenue to 4 percent of the nation s$580 billion sovereign-wealth fund. We don t have to cut pensions because the Norwegian economy isgrowing fast, she said. We re not in the cutting business --any Norwegian politicians now -- but it is a question of what youare using the growth for. The economy of the world s seventh-largest oil exporter hassteered clear of Europe s sovereign-debt crisis. The governmenthas no net debt and the biggest budget surplus of any AAA-ratednation, thanks to its sovereign-wealth fund. The country s mainland economy, which strips out the effect ofoil, gas and shipping, will grow 3.25 percent this year, thecentral bank said March 14. That compares with a EuropeanCommission estimate for a 0.3 percent contraction in the 17- membereuro region. The e-commerce company in China offers quality products such as Laboratory Drying Oven , Hot Air Drying Oven Manufacturer, and more. For more , please visit Corrosive Storage Cabinet today!
Related Articles -
Laboratory Drying Oven, Hot Air Drying Oven Manufacturer,
|
