I read a lot of business reports. So this comment came up in the past week....by the VP of the Swiss National Bank (Fritz Zurbrügg).
In general, there's been this trend going on.....not just in Germany, but across Europe....over the past couple of years, and it centers on the housing market.
Prices on homes/condos have been escalating.
Zurbrügg made a public comment last week....kinda warning that the Swiss housing market is in serious need of a correction (what you and I would call a hefty and dangerous correction).
His quote: "Markets today are more vulnerable to corrections in the form of declining prices and increasing numbers of mortgage loan defaults."
Newmax had the best details of the commentary.
If you looked around the Frankfurt 'shadow' of residences.....most houses (at least in good condition and not renovation projects) have escalated a good ten-percent in the past three years. It'd be awful hard in my region (around Wiesbaden) to find a stand-alone home (no renovation required) for less than 500k Euro (roughly $600k dollars).
To find the 80k to 150k Euro homes? Well....you'd have to travel a good hour outside of the Frankfurt/Wiesbaden region....to find regular homes in that value area.
Covid influencing this market? A fair number of people bought property when the escalating prices were occurring (before 2020) and they felt real comfortable in their jobs (making real money). So when Covid arrived, and short-work started up....their paychecks dropped by 15-to-20 percent. There are a fair number of Germans who are on the borderline of mortgage failure of this virus business.
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