I was reading this morning through the German business news, and there was a curious item which popped up. It was a Focus article, which chatted about the economy, and the real estate market.
Unlike the Florida or California real estate market in the 1990s and up to 2008 (blasting away yearly with significant gains)....the German real estate market is on a slight up-tick yearly. You could buy a house in 2012 for 400,000 Euro, and probably find seven years later that it might have gone up to 420,000 Euro in that period (if you did nothing to add onto the house). Although you might go into the high-end condo market (say in Frankfurt) and in a seven-year period....find your place did go up in value by 25-percent....but that's a unique situation.
So the emphasis of this article is that the real estate market has hit the 'ceiling' and prices might drift downward for a while. They aren't suggesting a drastic drop in price, but things are basically in a stall-period.
They even go back to the 2010 period (the last real stall period) and project similar numbers.
This coupling with the projected recession? Well, maybe it's just a weird trend....or maybe it's part of the recession itself.
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