Dusseldorf Real estate prices have been falling for several months. This is partly due to the strategic shift of the central banks. Their rate hikes make it more expensive for prospective buyers to borrow money from their bank. The result is that many people can no longer finance their dream of owning their own home. Demand for home ownership is falling. A trend reversal.
But prices are not likely to relax everywhere. In the current episode of Handelsblatt Today, Handelsblatt real estate expert Markus Hinterberger points out that the real estate market cannot be generalized: “You have to look at each city, each region for itself.” This also means: Where demand is high and supply is high remains scarce, prices could even rise.
>> Read also: These are the seven most important trends for the real estate market in 2023
This applies above all to the seven German metropolises – Berlin, Hamburg, Munich, Cologne, Stuttgart, Frankfurt am Main and Düsseldorf – and their commuter belts. “But what you can say is that for properties that are a few years old or that are in poor energy condition, prices can fall rapidly,” adds Hinterberger in an interview with Lena Jesberg.
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In addition, according to Hinterberger, some borrowers could be lucky with the building interest rates: “In the coming months, interest rates may even go down a bit.” The banks are trying to raise volume, i.e. to issue a lot of loans. With a temporarily lower rate, they could try to attract customers.
In view of all these developments, buying property, but also selling it, becomes a matter of timing. In the interview, Hinterberger therefore weighs up how good the time is for such a deal.
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