Denmark’s house prices fell for a seventh month, reaching a 10% decline from a June peak, as the market suffers from rapidly rising interest rates and high consumer-price inflation.
(Bloomberg) — Denmark’s house prices fell for a seventh month, reaching a 10% decline from a June peak, as the market suffers from rapidly rising interest rates and high consumer-price inflation.
Denmark is facing some of the same challenges as Sweden although its housing market decline started later and is so far less steep than the about 15% drop in its neighboring Nordic nation. The Danish central bank, which pegs the krone to the euro, has raised interest rates five times in seven months, to track the hikes in the eurozone.
The price for an average house fell 1% in January from a month before and home values have now returned to levels last seen two years ago, according to data published by Boligsiden on Friday. The data excludes apartment prices.
“The figures are yet again a somewhat gloomy reading,” Mira Nielsen, an economist at Nykredit, Denmark’s largest mortgage lender, said in a note. “The housing market is under pressure and prices are adjusting quickly to the new reality of interest rates.”
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