Construction costs are currently skyrocketing

Because you all know your stuff so well, I also searched Immoscout for our region here. In the smaller towns around here, there are exactly 2 kinds of listings. Either ancient rundown shacks with renovation backlog and glass blocks for 60-120k. Or everything from 2013 onwards for 500k and up. And very little in between. You can find a few listings described as "Saniert" or "Renoviert", both apparently a matter of interpretation, around 250k. If I had to describe the market in one word, it would be "weird".

Because you all know so much, I also searched Immoscout for our region here. In the smaller dumps here, there are exactly 2 types of offers. Either ancient wrecks with renovation backlog and glass blocks for 60-120k. Or everything from 2013 onwards for 500k and up. And only a few in between. You can find a few offers labeled "Renovated" or "Refurbished," both apparently a matter of interpretation, around 250k. If I had to describe the market in one word, it would be "strange."

Yup. With your examples, you can calmly just put a 1 in front of them here... :rolleyes: Totally crazy and the reason why we decided to build new. We never planned that, but then got lucky to get a plot (also not through the "official market") - and by now are really glad to have taken the step...

The prices for existing properties will not fall significantly. New constructions will continue to rise in price due to inflation and wage pressure, and this will pull the secondary market upward as well. And when interest rates start to fall again at the end of 2023, prices will continue to rise because everyone currently waiting will then strike.

Hmm why should interest rates fall again? The extreme low interest rate was actually the anomaly.

Stocks here are not getting cheaper either and mostly are sold under the table. BRW around 1,000€/sqm. New buildings are no longer affordable for "normal people" and then sit on ImmoScout and do not sell. Existing buildings are essentially renovated by local craftsmen, who are busy but if you are flexible, it can be done quite quickly. We turned a single-family house from 1978 upside down within 6 months and brought it up to KFW 85 standard. This year it continues. Advantage: After 6 months we live in our dream neighborhood in our own house, disadvantage: price-wise, including purchase price, we are quite a bit below new construction per sqm of living space, but it is still expensive. (Interest) as of today, I would not do it!

Hmm why should interest rates fall again? The extreme low interest rate was actually the anomaly.

Because no state can afford its debt at 3, 4, or 6% anymore.