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Number of homes for sale in Denmark up 30 percent in 2022

After a period with low numbers of homes for sale, 2022 offered a lot more to choose from for buyers in Denmark.

Number of homes for sale in Denmark up 30 percent in 2022
'For sale signs' are cropping up all over Denmark, with the number of homes on the market up sharply. Photo: Mads Claus Rasmussen/Ritzau Scanpix

New data from banking organisation Finans Danmark show that the number of houses for sale across the country is around 31 percent higher than it was a year ago.

This represents the largest influx of homes onto the market for 16 years, economist Brian Friis Helmer of Arbejdernes Landsbank told news wire Ritzau via written comment.

“The many extra ‘for sale’ signs come as a result of interest in buying houses drying out notably during the course of the year, as the housing market began to experience a headwind,” he said.

Higher interest rates in particular have dealt a blow to the market, he said.

Around 36,000 detached houses, terraced houses and apartments were for sale at the end of 2022, according to Finans Danmark.

The number of homes on the market is now at its highest for two years, Helmer said.

“But that comes from a point where it was at its lowest since 2006,” he also noted.

The price of a new home or flat has meanwhile fallen for the fourth consecutive month.

Copenhagen and its surroundings in particular have seen a sharp jump — the number of owner-occupied flats on the market has leapt nearly 70 percent in the last year.

But it’s not all roses for the would-be home buyer in Denmark. Higher interest rates make it more expensive to finance home loans, Helmer noted. 

“There are handles at both ends of the rope and the overall package for home buyers is therefore not better measured over all parameters,” he wrote.

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PROPERTY

Danish mortgage arrears increase as costs go up

A higher number of Danish homeowners are finding it difficult to meet the repayment schedule on their mortgages, new figures show.

Danish mortgage arrears increase as costs go up

Data from the interest organisation from banks, Finans Danmark, shows that the “arrears percent” or restanceprocent was 0.14 percent in the third quarter of 2022, a small increase compared to preceding quarters.

That means homeowners on average did not pay 1.4 kroner in every 1,000 kroner they were due to pay on their mortgages during the quarter.

It is understandable that late 2022 presented challenges for homeowners, an analyst said in comments to news wire Ritzau.

“It’s a good sign of health that homeowners are proving themselves to be solid repayers,” Brian Friis Helmer, private economist with Arbejdernes Landsbank, said in a written comment.

“Because homeowners are in the middle of a time in which increasing interest, higher energy prices, and generally high inflation make life as a homeowner more expensive than we have seen for many years,” he said.

The arrears percent reflects that proportion of total repayments from homeowners which has not been paid three and a half months after the payment deadline.

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