Forced auctions: increase slows down despite increasing numbers
Halle (Saale), Deutschland - The number of forced auctions in Germany continues to increase, but at the pace. According to an evaluation of the DTS news agency, around 2,800 appointments for foreclosures were announced for the coming weeks and months, which corresponds to an increase of almost two percent compared to the previous year. In the same period last year, the increase was even stronger, with growth of eleven percent. This development shows a turn, because the numbers had previously decreased constantly over the years. The reason for the forced auctions are often payment difficulties of real estate owners who can no longer serve their loans, and the less mutual dialogue with banks. Realing real estate prices currently play a role: Real estate is often still profitable for high market prices, before the forced auction occurs, as fundscene.com reported.
Another scenario shows in the half -year report of the real estate service provider Argetra, which shows that a total of 6,909 properties with a value of around 2.17 billion euros came to auction in the first half of 2024. This represents an increase of 8.3 percent compared to the same period last year. In 2023, the number had already risen slightly - from 12,077 to 12,332. If this trend continues, around 14,000 properties could be auctioned over in 2024, which represents a significant increase compared to 2023. Even if the key interest rates have been reduced, the credit costs for construction financing remain high. The current interest rate for 10 years of construction loans is 3.7 percent, but this is still significantly higher than the record values of the low interest rate phase between 2021 and 2022. These circumstances could continue to put pressure on the financial situation of many real estate owners, which increases the forced auctions, such as naanoo.com analyzed.