Red-hot housing market reaching record heights

Development not alarming yet, but exports maintain that the situation isn’t getting any easier for first time buyers

Denmark’s housing market continues to be smoking hot with a record high number of homes sold in March.

Figures from showed that 13,370 homes were sold last month, which is a record high for a single month and almost twice the amount sold in March 2020.

The figures revealed that there were significant increases for all types of housing – sales of apartments, villas, summerhouses and other housing types all shot up by 86-109 percent compared to last year. 

Curt Liliegreen, the head of housing think-tank Boligøkonomisk Videncenter, contended that the development is unsurprising given that the priorities and preferences of many have changed during the COVID-19 Crisis.

“Housing deals don’t occur spontaneously. It started to accelerate at the end of 2020 and the development can really be seen now,” Liliegreen told TV2 News.

READ ALSO: 2020 sets Danish housing market record

First-time buyers beware
Liliegreen said he expected the housing prices to keep rising as the supply is dwindling, but didn’t expect the market to overheat any time soon. 

But the prices in the Copenhagen Region are something to keep an eye on, he said. 

“It’s not a problem in itself when prices rise, but if they drop dramatically in a short period of time, it can threaten financial stability,” he said.

In the long run, however, the price spikes can become a problem for young first-time buyers and low-income groups who face a challenging entry into the market.

This year looks set to make a bid for another new housing record, fresh off the one set in 2020.

Last year, some 107,000 homes were sold across the country in total – by far the highest since Boligsiden began recording data a decade ago.