High mortgage rates are forcing buyers in the real estate market to negotiate for more and more significant discounts. This became the reason for the decrease in house prices in Denmark at the fastest pace since 2011.
Neighboring Sweden is facing the same problems. Its real estate market is falling at the fastest pace since the 1990s. After a long period of negative rates, house prices in Denmark are under pressure due to rapidly rising interest rates, although recently the situation was slightly better.
The latest data show the biggest drop in 11 years. In the third quarter, housing fell in price by 2.1% compared to the previous quarter. This was reported by Finans Danmark.
Initial house prices in the 3rd quarter were, on average, 7.3% higher than final deal prices. A year ago, the decrease was 3.6%.
Nykredit Realkredit is the largest mortgage bank in Denmark. Mira Lee Nielsen, its chief analyst, says that the market is characterized by a much smaller number of deals and a growing decrease in prices. The bank expects house and apartment prices to fall about 10% from a peak this summer to a low next autumn.