Construction costs are currently skyrocketing

According to the financing brokers Dr. Klein and Interhyp

Accordingly, in 2013 and 2014, more than twelve percent of real estate buyers each year took out ten-year fixed-interest loans with an initial repayment rate of only one percent. Thus, they have only repaid a very small part of the loan amount so far.

"Given the significantly increased interest rates since then, many of these homeowners will not be able to manage the follow-up financing," says Günter Vornholz, founder of the Institute for Real Estate Economics in Lüdinghausen. "We will see a number of distress sales of owner-occupied homes and condominiums this year and especially next year, which will likely put further downward pressure on already declined real estate prices," confirms Thomas Beyerle, chief researcher at the real estate investment company Catella...

The average interest rates for mortgage loans with a ten-year term fell from 2.5 percent in 2013 to 1.7 percent the following year.

The average mortgage in 2014 was 209,000, with an initial repayment rate of only one percent and an average interest rate back then of only 1.7 percent, so the new owners paid only 470.25 euros for interest and repayment. However, if refinancing is required next year, their remaining debt will still be 186,236 euros. If the average interest rate is still currently at 3.65 percent, these borrowers—at a renewed initial repayment rate of only one percent (which the bank must also agree to!)—would have to pay back 721.66 euros per month. So the threshold households, which back then could just afford 1% repayment, must then repay at least 50% more. At 5% interest and the bank requiring 2% repayment, we are talking about 1,086 euros, which means 130% more or roughly 600 euros more per month plus the since increased costs for living expenses and energy...

I think that is nonsense. Due to the inflation of the last 10 years, they can easily pay 40 percent more today.