Forced auctions in Germany: increase despite the sunken interest!

Forced auctions in Germany: increase despite the sunken interest!

Halle (Saale), Deutschland - The number of forced auctions in Germany continues to increase, but at a slow pace. According to an evaluation of the DTS news agency, around 2,800 appointments nationwide are scheduled for the coming weeks and months, which corresponds to an increase of almost two percent compared to the previous year. In contrast, the increase was still eleven percent a year ago. The reason for foreclosures is often in insolvency of real estate owners, often caused by high loan interest and rising real estate prices. These developments contribute to the fact that it becomes more difficult for owners to sell their real estate, both on the free market and by agreement with banks, as described in the Reporting by fundscene.com

In the first half of 2024, 6,909 properties have already been auctioned off, an increase of 8.3 percent compared to the same period in the previous year, according to the half -year report of the real estate service provider Argetra. This quick increase could indicate that the temporary deferral processes during the Corona pandemic and owners are increasingly confronted with financial difficulties. Apparently, many of these owners try to sell their real estate before an impending foreclosure procedure, which affects the numbers, as well as naanoo.com reports .

Current trends and perspectives

The trend in the real estate market shows a worrying direction: the key interest rates have been reduced, but the credit costs for construction finance remain high. The interest rate for 10 years of construction loans is currently 3.7 percent, which is significantly higher than the low interest rate phase from 2021 to 2022. This situation means that more owners get into payment difficulties and become more likely. The regional difference in the forced auctions is particularly striking: 31 for compulsory auction dates were scheduled in Thuringia, while there were only 13 in Bavaria. The lion's share of the auctions concerned residential properties, with single -family houses and condominiums being the most common victims.

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OrtHalle (Saale), Deutschland
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