In September, 5,443 homes were sold in the country, according to data from real estate media Boligsiden.
The last time fewer sales were completed in a month was in 2012, private economist Louise Aggerstrøm Hansen of Danske Bank noted.
“This is a marked cooling-off of the housing market across the country, but generally the slowdown is most pronounced in Copenhagen,” she said in a written comment.
“In the city of Copenhagen in September, half as many houses were sold compared to last year and 47 percent fewer apartments,” she said.
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Higher interest rates have a larger impact in more expensive housing areas, where prices have already seen steep increases in recent years, she noted.
“We therefore also expect to larger falls in price in Copenhagen compared to the rest of the country,” she said.
Low activity on the housing market is partly due to a lack of agreement between buyers and sellers resulting from houses having been put up for sale before interest rates went up.
“At the same time, interest rate wings mean that many buyers actually find it hard to calculate what a given property will end up costing them per month,” she said.
Other factors are also playing a role in the reversed house price trend.
“More expensive financing, more expensive everyday costs and higher [economic] uncertainty is affecting both the demand for homes and prices,” Arbejdernes Landsbank senior economist Jeppe Juul Borre said.