Housing prices dropped by a further 8 per cent in the final quarter of 2011, as 81 of the country’s 98 local authorities witnessed a depressed market getting worse.
Sellers were forced to slash their asking price by an average of 12 per cent throughout the year, and 14 per cent during the final three months.
Karsten Beltoft, CEO of mortgage lender Realkredit, said the market had suffered a ‘shock effect’ after summer, with widespread uncertainty and pessimism caused by the debt crisis and uncertain conditions for homeowners after the left-wing government came to power, but predicted 'light at the end of the tunnel'
. “We seem to have become accustomed to pessimism but 2012 could well prove to be a good year to buy property,” he said. “Interest rates are low and prices are very reasonable, seen from a historical perspective.