Back at pre-corona level – price reduction on housing

Since the middle of 2021, when historically low reductions were made in the price of housing, the size of the reductions has increased, so that they are now back at the pre-corona level.

In numbers, this corresponds to a price reduction of approx. DKK 30,000 for an average villa, analysis shows.

If you have your home for sale, you should not expect to be able to settle for the same low price reductions that characterized the housing market during the closures in 2020 and 2021. They are at the same level as before the pandemic hit in March 2020. This is shown by the latest figures from Boligsiden.dk.

For villas and townhouses, an average of DKK 483 per month is currently given in rebates. square metres, while the figure is DKK 732/m2 for holiday homes and DKK 751/m2 for owner-occupied apartments. When the price reductions were lowest in the summer of 2021, they were at DKK 238/m2, DKK 137/m2 and DKK 282/m2 for respectively villas, holiday homes and owner-occupied apartments.

At the real estate chain Estate the development does not come as a surprise.

– As the housing supply increases, and there is thus more to choose from, there will be more calm on the housing market, and this usually means greater price reductions. The current level is actually still not high if you look at it as a buyer. We have simply just witnessed a couple of historic years, which you don’t get much out of comparing with, because the situation was so extraordinary, says Thomas Hovgaard, press officer at Estate.

In kroner and eur, the increase in price reductions for an average home means, according to Estate’s calculations, a price reduction on villas of approx. DKK 30,000 and DKK 50,000 for respectively owner-occupied apartments and holiday homes.

-Over half of all housing transactions end with a negotiation, where a refusal is typically given, and we do not think that these levels scare people who buy and sell housing, which typically costs several million kroner. The size of the price reductions are good indicators of where the housing market is headed, and here we must say that it is towards more peaceful times, says Thomas Hovgaard.

He also believes that the current inflation and interest rate increases have affected the development.

– It is clear that you become tighter when you have to buy a new home when everything else rises. On energy alone, the price increases in certain cases mean an additional monthly expense, which corresponds to having to finance between half and a whole million extra. And that scenario will of course both make the buyers more steely and the sellers more lenient, says Thomas Hovgaard.


Source: IT-Kanalen by it-kanalen.dk.

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