Norwegian house prices 10% above equilibrium in 2018Q4!
Housing Lab has recently updated the estimates on fundamental house prices (determined by real per capita income, real after tax interest rates, and the housing stock per capita). Estimates suggests that house prices were overvalued by 10% at the end of 2018, but that the gap between actual and fundamental prices is closing. The underlying methodology is based on published research and is documented in Anundsen (2019).