Financial expert provides insights: Real estate prices in Lower Saxony have fallen significantly

Financial expert provides insights: Real estate prices in Lower Saxony have fallen significantly

According to a report from www.ndr.de,,

The prices for houses and apartments in Lower Saxony have fallen significantly this year. According to data from Landesbausparkasse (LBS) Nordwest, the average purchase price for used residential properties in the third quarter of 2023 was around ten percent below the level in the same period last year. A used one- or two-family house cost on average around 325,000 euros, used terraced houses and semi-detached houses around 279,000 euros and used condominiums around 179,000 euros. These price declines are related to interest rates for real estate loans that have remained stable and have risen sharply since the beginning of 2022.

Trend reversal expected as early as June
The LBS had already spoken of a turnaround in the real estate market in June. Older properties in particular that still need to be modernized in terms of energy efficiency offer prospective buyers more leeway when negotiating prices. This development is an indicator of a change in the real estate market in Lower Saxony.

The fall in the price of used properties in Lower Saxony could lead to increased demand and increased buying interest, as potential buyers could take the opportunity to benefit from the reduced prices. At the same time, however, this could also have a negative impact on the new construction sector, as investments in existing properties may appear more attractive. This change could therefore influence the real estate market in Lower Saxony as a whole and create new dynamics and trends in the industry.