Construction costs are currently skyrocketing

Whereas the banks do not have much to gain from additional collateral. Whoever starts with that will almost always end up in foreclosure. In this respect, they probably do not look into it in practice, then there is no problem ;)

However, one must also say that you shouldn't bite off more than you can chew.

A bank has no interest in a foreclosure auction. It doesn't earn anything from it and in the current interest rate situation, it can even lose because the house is sold for less than the outstanding loan and the evicted homeowner can no longer cover the remaining loan.

In this respect, an agreement can usually be reached with the bank, unless we are talking about both earners falling into ALGII. Then it really is over.

But otherwise? Reduce repayment, reduce the installment, extend the term.

Anyone who took a 15-year fixed interest period either still has a low rate for another 10 years or has already paid off 60 or 70% of their house. The bank has hardly any risk here, in contrast to the risk of a foreclosure auction.

I don't see a wave of foreclosures coming. Even if that disappoints many who never dared and still hope for bargains when the bubble bursts. But it just doesn't burst, certainly not nationwide.

Brief update on the construction price, after I wrote something about this a few weeks ago: We just had the last price round with the general contractor before the construction start next week (we are super excited) and the steel price has dropped further so that we no longer have to pay an extra 6k for our 12.8t of reinforcing steel, but "only" 5.2k. This corresponds to a price per ton of about €1700. The garage is now supposed to cost about 3.5k more (32.5k -> 36k), as the price of bitumen has increased ridiculously (can someone from the field confirm this?). The other trades, especially carpentry work and roof tiles (concrete), have remarkably remained price neutral for us for 12 months.

For everyone looking for current m² construction prices: We therefore come to a (for now final) square meter price of about €3,950 excluding interior fittings, exterior facilities, and other ancillary construction costs. Painting and filling work in EL otherwise just over €4k/m². That's several hundred euros above our original plan. Detailed information on our project can be found via search ;-)

Here houses around 140k (built 1940-1960) have slightly increased in price and are sometimes not even a week on common portals... But they are mostly located on plots beyond 1000sqm...

I think such properties are currently and will continue to experience small increases because they are interesting for craftsmen or DIY enthusiasts who simply do not get 500k + X from the bank...

For all those looking for current m² construction prices: We thus arrive at a (provisionally final) square meter price of approximately €3,950 excluding interior fittings, outdoor facilities, and other incidental construction costs. Painting and filling work in EL otherwise just over €4k/m². That is several hundred euros above our original plan. Detailed information about our project can be found via the search ;-)

A proud price. How would you classify your standard? Still medium or already upscale?

So if 4,000 EUR/m², that is 600,000 EUR for 150m², does not count as upscale, then "we" are really beyond help...