Financial expert explains: Falling property prices and cheaper building loans - buy now or wait?

Financial expert explains: Falling property prices and cheaper building loans - buy now or wait?

According to a report by www.zeit.de, real estate prices have fallen in recent weeks, and at the same time interest rates on building loans have also fallen slightly. This development is encouraging for those who dream of owning a home or condominium. According to the financing agent Dr. Small, the average conditions for a loan with a ten-year fixed interest rate are currently just over three percent, whereas two months ago it was around four percent.

As an expert in the real estate market, I can confirm that this development can have a positive impact on the market. Falling property prices and lower interest rates can lead to an increase in buying interest. Lower financing costs make properties more affordable, which could potentially lead to increased demand. This could help stabilize the real estate market in the long term.

In addition, the reduction in loan conditions could also stimulate construction projects. With lower interest rates, construction loans become more attractive, which in turn could lead to an increase in construction projects. This could lead to an increased supply of properties and balance the market.

Overall, falling real estate prices and lower interest rates can trigger positive dynamics in the real estate market. However, it remains to be seen how the situation will develop in the coming months and whether these trends will continue.