
Government cuts housing price forecast
The Danish government forecasts housing prices to grow by 2.7% in 2024, as per their latest economic statement released Friday. With rising incomes and high employment levels contributing to this growth, buyers are expected to have greater funds from gradually diminishing interest rates. This growth forecast, however, is less than the previous prediction of 3.2% for the year’s end. Looking ahead, a 3% increase is projected for the following year. The market for condominiums might see price drops due to new higher property taxes, although the second quarter showed price increases, mitigating the risk of a serious downturn. Positive trends are partially attributed to the strong labor market, characterized by high employment, low unemployment, and increasing wages, as observed by Brian Friis Helmer, an economist at Arbejdernes Landsbank.