There are currently tough differences between the offer prices and the final purchase prices.
Negotiations.
The last ten years have seen the real estate market feel "empty", and that
To have money for loans cheaply. Price negotiations only occurred when there was no actual need to buy a property. But that is exactly what is changing. Especially because interest rates have risen so much, there is now more room for negotiation when buying property.
The real estate market is currently in a phase of adjustment to the new economic reality. In the buyer's market, this is primarily shaped by the new interest rate level. Real estate sellers are currently finding it much more difficult to find buyers for their real estate offers. Those interested in buying with enough equity are benefiting from the reduced competition for real estate. They are currently finding significantly more offers and are more likely to negotiate the purchase price than before.
Is the price boom now coming to an end?
Further evidence of current market developments is provided by the Association of German Pfandbrief Banks (VDP). When it comes to reliable data on sales prices for real estate sales, the VDP is a good source. The regional appraisal committees also have valuable information. The actual sales prices of real estate are shown quarterly via an index. The basis is around 60,000 pieces of data from 700 banks united in the VDP. The results are an important part of the Deutsche Bundesbank's real estate price monitoring.
The market report on the index evaluation of the third quarter of 2022 bears the telling
Title: “Years of upswing in the German real estate market ends” . In the curve of the VDP
Index shows a clear kink.
For the first time in more than twelve years, residential property prices fell by 1 percent in the third quarter of 2022. Compared to the same quarter last year, however, there is still an increase of 4.7 percent , but no longer an increase of 8.7 percent as in the third quarter of 2021.
For single and two-family houses, prices still look reasonable, for
In contrast, compared to the second quarter of 2022, multi-family houses declined by just under
two percent . In the top 7 metropolises, the housing market was more stable, but even
Here, prices fell by 0.7 percent compared to the previous quarter.
It is expected that the trend for the next few years will continue with higher costs in
acquisition for buyers and greater losses in sales for sellers to a new level.
Comments