FORECLOSURES

One of the best gauges of the state of the housing market is the fraction of sales caused by foreclosures; the lower the fraction, the better the market.

Statistics released by Denmark's ever efficient statistics agency shows that this fraction varies widely throughout the country. In rich areas like the suburbs to the north of Copenhagen, for instance, the fraction is 1% or less. However, out in the sticks, the fraction is much higher. The trend is away from the countryside and into the big cities, meaning that there is little or no demand coming the other way. In Lolland, a rural area at the southern tip of Zealand, the fraction is a whopping 37%; more than one house sold in three is a foreclosure.

In the kommune where I live, the fraction is still a steep 21%. Old farms can be bought here very cheaply, if you like quiet, little traffic and wide open spaces. Many modern Danes, particularly the young, don't; fortunately, I do.

Walter Blotscher