This year, the prices of single-family homes are expected to fall by a total of 1.5 percent.
However, the fall in prices is expected to be more than offset by an increase of 1.9 per cent next year. This is stated in the Government’s Economic Report on Monday.
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The expectation of a price fall of 1.5 per cent this year is lower than when the government presented its then report on the Danish economy in May.
At the time, there was an expectation of a price drop this year of 4.2 percent. At the same time, there was an expectation of a price increase for next year of “just” 0.5 percent.
– The government has become more optimistic about housing price developments since it published its latest forecast in May, says Lise Nytoft Bergmann, housing economist at Nordea, in a written comment.
– But it is also difficult to be different, since the housing price statistics of recent months have been extremely uplifting reading, and where we have been presented with one good news after another.
Figures from Statistics Denmark show that in the first six months of 2020, an average of 4,568 single-family houses were traded per month. That is a larger number of trades than the average for the whole of 2019.
Sales prices also rose during the first half of the year.
Just from February, before Denmark closed down, and until June, prices for single-family homes have risen by 0.8 percent. This is shown by non-seasonally adjusted figures from Statistics Denmark.
In its Economic Report, the government writes that although the housing market has emerged relatively unscathed from the first months of the corona crisis, there is an expectation that the housing market in the second half of the year will be affected by declining employment and rising unemployment.
– However, it is expected that the decline in the housing market will be short-lived, and that in 2021 there will again be moderate growth in housing prices.
– This partly reflects the solid starting point before the corona crisis and partly the expectation of a generally short-term downturn in the Danish economy, the government writes.
In the latest Economic Statement, the government expects employment to fall by 50,000 people this year.
At the same time, gross unemployment is expected to increase by 43,000 people.
The expectation of a price fall of 1.5 per cent this year is lower than when the government presented its then report on the Danish economy in May.
At the time, there was an expectation of a price drop this year of 4.2 percent. At the same time, there was an expectation of a price increase for next year of “just” 0.5 percent.
– The government has become more optimistic about housing price developments since it published its latest forecast in May, says Lise Nytoft Bergmann, housing economist at Nordea, in a written comment.
– But it is also difficult to be different, since the housing price statistics of recent months have been extremely uplifting reading, and where we have been presented with one good news after another.
Figures from Statistics Denmark show that in the first six months of 2020, an average of 4,568 single-family houses were traded per month. That is a larger number of trades than the average for the whole of 2019.
Sales prices also rose during the first half of the year.
Just from February, before Denmark closed down, and until June, prices for single-family homes have risen by 0.8 percent. This is shown by non-seasonally adjusted figures from Statistics Denmark.
In its Economic Report, the government writes that although the housing market has emerged relatively unscathed from the first months of the corona crisis, there is an expectation that the housing market in the second half of the year will be affected by declining employment and rising unemployment.
– However, it is expected that the decline in the housing market will be short-lived, and that in 2021 there will again be moderate growth in housing prices.
– This partly reflects the solid starting point before the corona crisis and partly the expectation of a generally short-term downturn in the Danish economy, the government writes.
In the latest Economic Statement, the government expects employment to fall by 50,000 people this year.
At the same time, gross unemployment is expected to increase by 43,000 people.