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More houses continue to be put up for sale, but at higher prices.
This shows figures for housing supply in September from Finans Danmark.
At the end of September, there were thus 34,222 detached and terraced houses for sale in Denmark. This is approximately 14 percent more than the same month in 2023.
And the prices of the sales advertisements were at the same time the highest ever according to Finans Danmark.
Now a typical house of 140 square meters is offered for DKK 2.9 million, which is just over DKK 100,000 more than a year ago.
It is good news for buyers that there is more to choose from, points out Peter Jayaswal, who is director of Real Credit and Property Financing at Finans Danmark.
And even if the prices of the sales ads are higher, falling interest rates are beneficial for buyers, among other things.
“The sellers demand higher prices, but as a buyer you can be happy that interest rates have fallen. If you have to borrow for your home purchase, it is now cheaper than before,” says Peter Jayaswal in a press release.
At the same time, the increasing supply also helps to give buyers a better negotiating position and thus take the brunt of price increases. This is explained by Brian Friis Helmer, who is a private economist at Arbejdernes Landsbank.
“A potential home buyer has more to choose from and can afford more time to think when there are more homes to choose from. And the sellers have more competitors on the market, and that makes their negotiating room smaller than we saw, for example, during corona”, he writes in a comment.
While more for sale signs counteract higher prices, there are also some that help to give the prices air under their wings.
This applies, among other things, to high wage increases, high employment and low unemployment. This means that the Danes’ purchasing power is on the rise.
All in all, Brian Friis Helmer expects house prices to rise slightly in the coming time.
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Source: politiken.dk
