Affordable housing is a hot topic in Germany, and I noticed N-TV had a update this morning on housing.
The Federal Institute for Research on Building, Urban Affairs and Spatial Development 'says'......that home prices ought to lessen shortly. How much? Well....that part is left out of the story.
What you can say....in major cities (like Frankfurt, Koln, Stuttgart, Berlin, etc)....prices are at a fantastic level. Even if you drove 30 minutes beyond the city limits.....you shouldn't expect much of a discount.
In my region of Wiesbaden.....you'd have to around 40 km beyond the boundary....to start seeing some lessening of home prices. In my village (shadow of Wiesbaden)....if you went looking for a home less than 500,000 Euro ($540k roughly), you won't find anything.
The claim here by the research folks is that Covid, energy prices, inflation, and the war....have brought a decline up (which you don't yet see in home pricing).
My belief? Maybe there's some five to eight percent decline that you start to see by the fall of 2022 on home prices, and maybe it bottoms out at 10-percent by the end of 2023.
Would that be enough to change things? No. I would argue that it still leaves half the population in a no-win situation. I'd also argue that within five years...the economy will find a path to recovery, and normal pricing will return.
No comments:
Post a Comment