July saw the first average decreases in the prices of both houses and apartments for several months.
The price of houses fell by 1 percent, whole privately-owned apartments on the market fell in price by 1.5 percent, new data from real estate site Boligsiden show.
The number of apartments on the market has increased by 7.2 percent, meanwhile. For houses, there was a 3.8 percent increase to the number of properties available.
The numbers observed by estate agents in July indicate a new reality on the housing market, according to housing economist Mira Lie Nielsen of Nykredit.
Nielsen told news wire Ritzau that “buyers now have a better set of cards in their hands.”
“The supply has become bigger. Now prices are also starting to give way. Sellers can certainly feel this,” she said.
“Prices have begun to give way to the pressure from increasing interest, higher inflation and the economic uncertainty that has built up,” Nielsen said.
That assessment was echoed by Arbejdernes Landsbank senior economist Jeppe Buul Borre.
“We are seeing a housing supply that has grown. Earlier in the year, the supply was at its lowest for around a decade and a half. But it’s begun to increase during the spring and summer,” he said to Ritzau.
“On the other hand, it has become more expensive to buy and live in a home. That also means that this demand for housing, which has been extremely high for the last couple of years, is not what it once was,” he said.
The trend must continue for several months before any certain conclusions can be drawn, he also noted, but added nevertheless that the drop seen in July was “probably the start of a further fall” in prices.
“We are looking ahead to a market where heating of housing has become more expensive. Interest rates have also gone up, so when you need to finance the purchase of a property, that has also become more expensive,” he said.
Regional differences in the current trend were meanwhile pointed out by Nielsen, who said that the Greater Copenhagen region had seen a larger increase in the number of properties on the market than other parts of Denmark.
“The marked slowing down of the property market can be seen at the moment in the market for private apartments, where the number of transactions has fallen markedly,” she said.