Home prices in Denmark rose for a fifth consecutive month, spurred by increased purchasing power and stabilizing interest rates.
(Bloomberg) — Home prices in Denmark rose for a fifth consecutive month, spurred by increased purchasing power and stabilizing interest rates.
House prices increased 0.4% in July from the previous month and by almost 4% since February, real estate data provider Boligsiden said on Thursday. Prices for apartments are up by more than 5% over the five months. The rebound comes after prices in both segments dropped more than 10% from the peak last year.
Stable interest rates and a better economic outlook are driving renewed interest in buying a home, Jeppe Juul Borre, chief economist at Arbejdernes Landsbank, said in a note. Activity in the Danish market “is starting to resemble the time before Covid,” after sales grew more than 40% since last year’s low, he said.
House prices are still some 7% below the June 2022 peak, but the market appears to be past the worst and to avoid the same sharp decline seen in neighboring Sweden. The burgeoning trend reflects that Danes’ real wages are rising again, driving up purchasing power, while consumer confidence is improving, Mathias Dollerup Sproegel, senior economist at Sydbank, said in a note.
About 15% of Danish homeowners plan to sell their home in the next six months, the highest level since April last year, according to a recent survey by real estate broker Home.
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