Houses in these federal states recorded the greatest price decline - financial experts analyze the development

Houses in these federal states recorded the greatest price decline - financial experts analyze the development

According to a report by amp2.wiwo.de, an analysis of classified ads shows that house prices in certain federal states have fallen sharply. Brandenburg, Saxony and Bavaria were particularly affected, where prices fell by 38.3%, 36% and 29% respectively. In comparison, Hamburg, Saarland and Bremen recorded the smallest declines with 8%, 11.7% and 15.6% lower offered purchase prices for houses. Overall, the purchase prices for houses on classified ads fell by an average of 24.2% within one year. In October 2022, an average of 614,262 euros were advertised for a house, while in 2023 it was only 465,636 euros. Despite these falling prices, rents rose by 1.3% over the same period. This development may indicate that the market is slowly recovering as the supply of houses for sale has increased significantly again.

The falling purchase prices for houses could have various effects on the real estate market. On the one hand, buyers who can meet the equity requirements could look forward to cheaper offers. This could lead to an increase in demand. On the other hand, property owners could suffer losses if they sell at lower prices. Rising rents could lead to more people opting for the rental model instead of buying.

Overall, these data indicate a certain stabilization and possibly even recovery of the real estate market. This could indicate that the market is gradually adapting to the new financing environment, which could bring positive changes for potential buyers.