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Danish house market at record poor state such that it begins to pain

Saturday, 07 January 2012
The Danish housing market has reached a very painfully poor state that all indications show the situation getting worse. Danish people’s interest in acquiring a new home is at the worst state ever as exemplified by the nature of turnover in the housing market which shows the lowest in sixteen years.

Some house shoppers say that they are ready to buy, but do not think that the quality and prices are right in the areas they are interested in.

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Still, interest rates and mortgage tax are lower than for a long time in the Danish history as such this is a real buyers market. But statistics from the Danish leading real estate borrower,  Danke Realkredit show that sales in the housing market is the lowest in 16 years.

Then why are people not buying but are waiting remain a puzzle especially those who are ready to buy but prefer to wait.

The situation is the opposite for those who bought houses when the housing bubble in Denmark was at its peak and prices were high. Many of them today can not sell their homes if they have to move to get a job elsewhere. Also many of their homes have hit negative equity as such all those years of paying high mortgages with skyrocketing interest rates have been years work in vein.  Most house buyers would not even pay half of the price for those houses today

According to  Karsten Beltoft, Director of Realkredit, where the Danes borrows most of their money for housing, "right now the  housing market is tight. Buying have creped out and prices have fallen.
But housing prices are in the stabilization position and during the year they should even begin to rise in the Copenhagen area again,” he says.

It's all about that the Danes must have confidence in the Danish economy and the courage to start buying homes again.
By Scancomark.se Team




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