Prices for real estate are stable, partly declining

Where can one invest safely in crises? How are property prices developing? That's the question property owners who want to buy or are thinking about selling are asking themselves at this time. Wait and see or act?

To assess the situation on the German real estate market, it is worth taking a look at the Europace House Price Index EPX. This is based on actual real estate financing transaction data from the Europace financing marketplace. More than 20 percent of all real estate financing transactions for private customers in Germany are processed via Europace. The EPX was developed in 2005 together with the Federal Office for Building and Regional Planning (BBR) and has been collected monthly since then. It includes existing and newly built houses as well as condominiums.

The Europace House Price Index already showed a price decline for all segments in July. Prices for condominiums fell by minus 0.86 percent to 228.65 index points. Within the past twelve months, prices had still grown by 7.93 percent.

Prices for new detached and semi-detached houses are also falling slightly for the first time, with a decline of -0.26 percent. Compared to the previous year, the growth of 11.65 percent was still above the ten percent mark. After condominiums, prices for existing properties are falling the second most. The segment recorded a decrease of -0.69 percent and a drop to 215.63 index points. Within the past twelve months, prices for existing homes rose by 8.03 percent.

"Buyers are becoming more cautious in the current situation due to high inflation and rising energy prices. However, we also see that property prices have reached a peak for the time being and are currently falling slightly. (...) Sellers are currently more willing to talk and negotiate about purchase prices again. This means that, despite the rise in interest rates, there are also new opportunities for consumers," explains Stefan Münter, Co-CEO and Board Member of Europace.

(Photo / Graphic: © Europace)