German house prices – no boom after correction has ended
Residential real estate prices in Germany have recently risen again, ...
Commerzbank Economic Research
08/30/2024
Price correction seems to be over, ...
as the price correction on the German real estate market triggered by the ECB's massive interest rate hikes come to an end? At least prices for existing properties have risen again slightly since the start of the year, after previously falling by more than 12% since spring 2022.[1] This would mean that the price correction has ended sooner than we had expected. We had previously assumed that prices would continue to fall slightly until the end of this year. This is because real estate – based on model estimates and in relation to economic fundamentals – is still around 5% to 10% overvalued.
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