How has the mortgage regulation implemented in 2017 affected house prices in Oslo?

Abstract

We show that regulatory mortgage and equity restrictions, implemented in Oslo in 2017, leveled the abnormal house price surge. Results indicate that both regulatory measures analyzed in this thesis are causing the price reduction. The paper provides evidence that the 40 percent equity requirement on secondary homes affects investors particularly. Despite this feature investor-based real-estate acquisitions increased post regulation, which is probably a result of the equity growth stemming from the price hike pre-regulation.