Real estate credits. Will the increase in loan refusals make market prices fall?
© Ouest-France Archives/ Joël Le Gall A strong fall in prices will be possible, only if there is a massive influx of housing for sale. With the increase in loan refusals, the risk is to see demand reduces on the real estate market. And so the prices are deflated or the market freezes. The coming months will be decisive for this economic sector which weighs 11% of GDP. It is still a little too early to really identify the effects of loan refusals on the French real estate market.
The increase was weakest for single and two-family houses in the urban circles. In top metropolises, prices for condominiums climbed by 5.0 percent. © Photo: dpa/Hauke-Christian Dittrich houses in Lower Saxony.
The subdued property demand strikes the prices for apartments and houses in Germany. The price increase significantly weakened in the third quarter within a year. Compared to the previous quarter, residential properties were even 0.4 percent cheaper, as the Federal Statistical Office announced on Thursday in Wiesbaden. From July to September,
residential properties cost an average of 4.9 percent more than in the previous year. According to the information, a lower increase was recently recorded in the third quarter of 2015 with 4.4 percent.
real estate market in front of the turn
Düsseldorf. For the first time since 2013, the prices for houses and apartments have hardly risen, some of them are falling. This is how it should go: The Empirica Institute will see a decline of at least ten percent next year. © Julian Stratenschulte Since 2013 we have got used to the fact that the prices for condominiums as well as one- and two-family houses increased.
In the second quarter of the current year, one and two-family houses and condominiums were still 9.7 percent more expensive within one year of the latest data.
The largest price increases in the third quarter in sparsely populated rural circles. Houses and two-family houses increased by 7.8 percent, condominiums cost 7.4 percent more than a year earlier.
in the top metropolises Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf climbed prices for one and two-family houses by 6.2 percent and 5.0 percent for condominiums.
was the weakest with 1.8 percent for single and two-family houses in the urban circles. Apartments cost 4.5 percent more there than in the previous year.
The increase in credit rates, but also the significantly increased inflation and high construction prices put a strain on the demand for real estate after years of boom. The German Institute for Economic Research (DIW) considers a decline in residential property prices by up to ten percent to be possible in the coming year. DZ Bank expects a minus of up to six percent in 2023. (dpa)
Britain's house price rollercoaster: How prices have risen by up to 20 PER CENT since Covid .
House prices rocketed by up to 20 per cent in some areas of the UK since 2019 - with the biggest increases seen in the south east and south west of England.House prices have rocketed by up to 20 per cent in some areas of the UK since 2019 - with the biggest increases seen in the south east and south west of England, according to Rightmove.