We have been observing rising interest rates since the beginning of the year.
Currently, the ten-year loans for construction financing are between 2.5 % and 3 %. Compare this to the previous year – when it was only around 0.8 %.
Rising interest rates reduce purchasing power and will dampen in the long run.
How are prices developing?
In the future, this will lead to more properties coming onto the market – the supply will increase – and there will be more competition between the offers.
In the past years, we have had annual price increases of around 15 % – that should be over now.
We are assuming that we will also continue to achieve good prices in the future – though it may become more difficult.
How should buyers and sellers behave now?
According to market forecasts and rising interest rates, anyone who wants to sell their property for the best possible purchase price, should do so soon!
From the buyers’ point of view, it is wise to invest while interest rates are still low.
Anyone who finds a suitable offer now and has the necessary equity, should not hesitate. As interest rates are continuing to rise further and this trend will continue in the foreseeable future!
And now to end with a small tip! Anyone who has already taken out a loan for construction which is now at the end of the term should check as to what extent he or she can secure a follow-up financing with a low follow-up interest rate.
We know well the real estate market in the Oder-Spree district and are happy to
advise owners and buyers alike.