After the turnaround in interest rates, who can still afford to own a home? According to the German Economic Institute, interest in real estate has fallen significantly in the past year.
According to a study by the German Economic Institute, the range of affordable residential properties for sale has decreased significantly in the past year. For example, for middle-income households, the proportion of affordable single-family homes fell from 40 percent in the first quarter to 28 percent in the third quarter.
For the 20 percent of households with the highest income, the supply has fallen from 62 percent to 47 percent since the beginning of the year. The authors of the study published on Thursday see the turnaround in interest rates last year as the main reason, with interest rates for real estate loans rising again. According to the study, a property is considered affordable if the household has to spend a maximum of 30 percent of its income on interest and repayment of a loan. First, the “Handelsblatt” (Thursday) reported on the study.
The turnaround in interest rates also has an impact on the supply situation in publicly accessible online advertising platforms, it said. The number of offers has increased significantly since the beginning of 2022. In October 2022, 60 percent more single and two-family houses and 41 percent more condominiums were advertised across Germany than at the beginning of the year. “There are indications that higher-priced regions are more affected by consumer restraint.” The advertised purchase prices have so far remained largely stable despite the reluctance to buy.
Study IW report “Handelsblatt”
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
