The situation in the Danish housing market is unstable: the price is rising, then falling. Last year, Denmark was granted the lowest in a decade the number of mortgage loans, and in 2011 was marked by further bank failures.
The entire first half of last year house prices rose, but now the real estate market in Denmark significantly reduce them, reports the portal Global Property Guide. Because of weak economic growth coupled with problems in the banking sector, most of the housing market in Denmark have chosen a strategy expectations.
The motion of the real estate market generally reflects the economic situation in the country. Denmark's GDP increased from 0,7% in I quarter of 2010 to 1,5% in II quarter. However, by the end of the year growth has slowed.
Problems in the banking sector of the country led to the fact that in 2010 the population was issued the lowest number of mortgage loans in 10 years. In February 2011 in Denmark, another bank went bankrupt - Amagerbanken. It was the eighth largest bank in terms of deposits and lending.
With the global financial crisis in 2008, 11 financial institutions in Denmark were financially incapacitated. Overall, however, the financial system in the country remains stable, says Central Bank of Denmark.