Real estate prices in Denmark are rising again, suggesting that the Nordic country’s housing market is mirroring rebounds in neighboring Sweden and Norway.
(Bloomberg) — Real estate prices in Denmark are rising again, suggesting that the Nordic country’s housing market is mirroring rebounds in neighboring Sweden and Norway.
Danish house prices rose 1.2% in March from February, the first increase in nine months, real estate data provider Boligsiden said on Thursday. Prices for apartments and for vacation homes also rose, according to the non-seasonally adjusted data.
“There are several indications that Danish households are in better conditions,” Birgit Daetz, a housing economist at Boligsiden, said. “Inflation is not rising at the same pace as before, while energy prices have also calmed down. In addition, many Danes face small salary increases this year.”
The Danish rebound follows a small recovery in Swedish home prices after one of the biggest routs globally that many economists forecast isn’t over yet as the Riksbank keeps tightening. Housing prices in Norway have now gained for four months in a stronger development than projected by the energy-rich nation’s central bank.
Denmark’s inflation rate is down at 6.7% from a four-decade peak of 10.1% in October and consumer confidence has also improved. Still, even with March’s increase, house prices remain 9.5% below the peak.
“We’re seeing a small comeback,” Jeppe Juul Borre, the chief economist at Arbejdernes Landsbank A/S, said in a note. “Even though one has to be careful about concluding too much from one month of increases, there are several factors that point to a better direction for the housing market.”
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