house Prices expected to grow slightly less than previously thought this year and next year, says the government.
The rise in home prices is going to persist for the next year, although increases will be less than previously expected.
Such is the assessment from the government in the latest edition of the Economic survey, published on Monday morning.
In its latest forecast waiting for the government, that house prices for single-family homes will increase respectively by 2.7 percent, 3.2 percent and 3.0 percent in 2019, 2020 and 2021.
For this year and next year there is talk of a downgrade compared to the previous forecast.
In October, when the government presented the previous edition of the Economic survey, expectation was an increase of 3.1 percent this year and 3.4 percent next year.
– We agree with the government, and we expect that housing prices will increase by around three percent this year and next year, writes Brian Friis, Helmer, privatøkonom in Arbejdernes Landsbank, in a comment.
In line with the government justifies privatøkonomen its expectation that, among other things, is the view of the continued low interest rates, which makes it easier for more people to buy housing.
– the Interest rates have dropped massively through the year, and there is a view that the low levels did not change provisionally.
– add to this that the Danish economy is experiencing a boom with rising real wages, improvement in employment and boligbyrden (the proportion of disposable income used to pay taxes and interest payments for the dwelling) is low in a historical context, writes Brian Friis, Helmer.
Also boligøkonom Mira Lie Nielsen from Nykredit share the government’s continued optimism in relation to further price increases.
– Many families have experienced to be able to buy a house for more, as interest rates have dropped. It is hovedforklaringen that house prices continue to rise and are also expected to do so in the coming years, she writes in a comment.
Earlier Monday showed figures from the Finance of Denmark, the organization for the financial sector, that in the third quarter has been sold 12.109 houses.
It is not seen more in the soon 16 years, Finance Denmark has led the stats with hushandlerne.
in Parallel with the increasing number of house sales, the average price of homes sold also increased.
The average price per square metre is now 14.129 dollars per square meter. Also this is a record, according to Finance Denmark’s figures.
/ritzau/
