Real estate market in transition: Prices in the Rems-Murr district have fallen significantly, but is now the right time to buy?

Real estate market in transition: Prices in the Rems-Murr district have fallen significantly, but is now the right time to buy?

According to a report from www.zvw.de, the real estate bubble in the Rems-Murr district has burst and the prices for houses and apartments have fallen significantly. On average, a condominium costs 3,000 euros per square meter, compared to 3,200 euros a year ago. The prices for houses have fallen even further; a house currently costs an average of 495,000 euros, compared to 530,000 euros last year.

Increased interest rates and high inflation are cited as reasons for the price drop. Due to the increased interest rates, houses are no longer affordable for many interested parties, so they tend to look for cheaper apartments. High inflation is also putting financial strain on many families. Property owners who have to make higher loan payments may also want or need to sell their property in the future.

The residential market report also shows that the prices for new buildings are no longer affordable for many people and that cheaper existing properties are therefore preferred. The difference between the prices of new buildings and existing properties is becoming ever larger. In addition, more existing properties are coming onto the market, while the number of people who can afford properties has decreased. Marketing times are longer and high-priced apartments are difficult to sell.

The real estate market has changed from a seller's to a buyer's market in a short period of time. This is good news for those who can still afford a property as they can take their time and can often still negotiate the price. During the peak period around two years ago, sellers received 20 to 30 percent more for existing properties than they do today.

For anyone who would like to buy a property, the experts advise buying it once they have found their dream property. The price development for new buildings is expected to be stable, while further price declines are expected for existing properties. However, no one can say for sure whether prices will continue to fall, and it is uncertain whether a suitable property will be found again a year later. In addition, a property is always a good long-term investment, especially as rents continue to rise.

Source: According to a report from www.zvw.de