Is this the end of the overheated real estate market? (large intestine)

In addition to the slight fall in house prices, supply also increased slightly. The percentage of open bids actually decreased slightly, while the average lead time increased by one day. Let’s face it: everything is (still) in the margins, but we may be almost out of these extreme growth rates in the real estate market.

However, this makes little sense for beginners. Because of the slower rise in house prices, these expensive owner-occupied homes – buyers paid an average of 426,000 euros for a house in March – have in no way become cheaper. After all, it only has a price.Reduce† The market is also still very tight due to the limited supply. And as a rule, sold houses always sell above the asking price.

Due to the rising mortgage interest, buying a house seems more difficult than easy. That’s because home buyers now lose more each month for the same mortgage amount. And real estate prices must fall hard enough to offset this latter effect. For a couple who could previously buy a house for around $410,000, house prices would have to fall by more than 12% not to feel the rising mortgage interest in their portfolio every month.

An interest rate hike, which is apparently limited to 1.5 percent, therefore has important implications for who has to pay. For example, in the event of a severe economic downturn, a sharp fall in real estate prices could offset rising mortgage rates and inflation.

This can put newbies at ease as long as they manage to keep their business in such a scenario. But even then, the challenges of realizing a healthy housing market for the company don’t diminish. So for starters, the flag is still a long way off.