Analysis: What impact do high building interest rates and real estate prices have on the real estate market?

Analysis: What impact do high building interest rates and real estate prices have on the real estate market?

According to a report by www.noz.de,
The desire to own a home remains unbroken, but for many the dream remains unattainable. Hubert Engelmeyer, real estate agent from Bad Iburg, explains the consequences of high building interest rates, high real estate prices and strict energy standards. Houses worth more than a million would be sold without any problems, but “the healthy foundation is falling away”.

Real estate prices are constantly rising due to high building interest rates and now unaffordable energy standards. Fewer and fewer people can afford to own a home because prices are becoming unaffordable for normal income groups. This can lead to negative market dynamics as the sales foundation is shaken and a large portion of the population is forced out of the market. This, in turn, could lead to a slowdown in the real estate market and a decline in investment in real estate.

Rising real estate prices and building interest rates make access to home ownership significantly more difficult for many people. This creates an unhealthy imbalance in the real estate market and could lead to reduced demand and interest in real estate investment in the long term. The government is expected to take regulatory action to reverse this trend and enable more people to access home ownership.