Price index for residential real estate fell again in October: Current developments from the perspective of financial experts

Price index for residential real estate fell again in October: Current developments from the perspective of financial experts

According to a report by www.faz.net,
Average residential property prices continued to fall on average in October. The Europace house price index, which is based on data from the financing platform Europace, which belongs to the listed company Hypoport, fell both compared to the same month last year and the previous month. Over the year, the index fell by 4.17 percent, compared to the previous month by a minimal 0.08 percent. However, many other indices for real estate prices have recently shown higher price declines over the year. According to Europace, there were differences depending on the property type. The prices for condominiums fell by 6.83 percent compared to the same month last year and by 0.37 percent compared to the previous month. The prices for existing single- and two-family homes fell by 7.66 percent compared to the same month last year and by 0.51 percent compared to the previous month. In contrast, the prices for new one- and two-family homes rose by 1.61 percent compared to the same month last year and by 0.55 percent compared to the previous month. Stefan Münter, co-CEO and board member of Europace, spoke of a “moderately normalizing market”. Building interest rates have also fallen slightly, to 4.06 percent. The real estate market in Dortmund is showing a slight increase, while prices in Düsseldorf have continued to fall. All of this data points to a declining real estate market. Rising inflation and the ECB's ongoing low interest rate policy could have further effects on price developments. The significant price declines in the real estate market could continue in various regions of the country.