Danish House Prices Rose for First Month in Seven in DecemberPeter Levring
Danish house prices rose in December for the first time in seven months and the number of homes for sale dropped as the nation’s property market shows signs of recovering.
The Home House Price Index rose 1.9 percent last month from November, the real estate brokerage of Danske Bank A/S, said in a press release today. The figures are adjusted for seasonal swings and based on a three-month rolling average. Prices slipped 1.9 percent from a year earlier, it said. The number of homes for sale dropped 2.6 percent last month and sank 12 percent from a year earlier, according to a separate release published by the Association Danish Mortgage Banks.
Denmark’s house prices have plunged at least 20 percent since a 2007 peak, sending the nation into a recession and sparking a regional banking crisis. The economy, which probably contracted 0.4 percent last year, will grow 1.2 percent in 2013 as the housing market recovers, the government estimates.
“The stabilization of house prices is still fragile,” Christian Hilligsoe Heinig, chief economist at Danske Bank’s mortgage unit, Realkredit Danmark, said in a press release. “It’ll rely on how the domestic economy performs and how much confidence potential buyers have in the economy.”