Explode prices for real estate: The housing market remains tense!

Explode prices for real estate: The housing market remains tense!

The price trends on the real estate market are ahead: while prices were reduced in rural areas, the urban centers show a significant increase. In the larger cities, the prices for apartments increased by 2.4 percent compared to the previous year and 1.0 percent in the quarterly comparison. House prices also climbed 0.2 percent higher. These developments are fueled by the ongoing demand and the concise offers in urban areas, such as Verlagshaus jaumann reported.

In contrast, the rural regions experienced a price reduction of 5.7 percent in the annual comparison. The houses were also 2.1 percent cheaper than in the previous year, refuted by a stagnating short -term price. This illustrates the growing imbalance of the price developments between urbanization and rural emigration, which continues to shape the real estate industry. At the beginning of 2023, a high inflation of an average of 5.9 percent was determined in Germany, caused by rising energy and raw material prices and interrupted supply chains. The effects of inflation can also be felt on the construction and producer prices. Building materials and workers have become more and more expensive, which continues to drift the inflation rate, as Statista describes.

These developments are of crucial importance, since they influence both the affordability of the living space and the economic decisions of many households. Higher construction costs and persistent price increases make the real estate market more uncertain, while consumer prices are still in focus. The dynamics between supply and demand will continue to bring new ups and downs in the price structure of the real estate.