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.