Construction costs are currently skyrocketing

The cabin that cost 350-375k seven years ago is now almost 500k. That is not even exaggerated, at least that's my feeling.

Or more - indeed. But interest rates are even higher now, the houses have not aged well given the current situation, and extensive modernizations have the same cost & availability problems as new builds..

The bubble is slowly coming to an end!

Even with a decent income and nice equity, you are currently being punished for the bad timing of ECB interest rates, energy inflation, and Corona/ Ukraine.

Friends of ours are starting in the fall, paying 1.8 percent despite a 70% loan-to-value ratio, no more KfW, and the developer says 30% surcharge for the construction contract in advance. Easily 80-90k more expensive than fall 2021.

What the hell do the traffic light coalition members think they will do about the housing market?

Stagflation, I hear you coming...

The market will regulate itself, just a question of timing. This year? Difficult, as the order books are full. There are developers who still stand today and say that demand is higher than ever and they are selling. They know nothing about problems with interest rates and construction costs. Aha. Whoever believes that. It's time for fewer new house construction contracts to be signed and for the order books to loosen up a bit.

Signed our financing at the end of February - as of today we would be looking at about +0.75% interest for the conclusion with the same terms. That would be about €250 additional monthly burden - if that doesn’t eventually affect demand, then I don’t know anymore ...

I have my doubts whether this will cool down so quickly. The wage-price spiral is just beginning and interest rates are still comparatively low. Accordingly, quite a few will still want to convert their available cash into real estate. Interest rates are one factor, but another is the expectation for the future. As long as enough buyers assume prices will rise, they will continue to rise.

At this point, I would also slowly start to differentiate between new construction and existing buildings. In new construction, you have a modern house from the outset with good insulation, a heat pump, and photovoltaics. In most older buildings, on the other hand, an expensive core renovation is necessary if you want to properly meet future regulations. Simply replacing the oil burner with gas is no longer an option. With CO2 pricing as well, a lot will still come upon those who operate their old buildings with an existing gas heating system.

The bubble is slowly coming to an end!

Even with a decent income and nice equity, people are currently being punished for the bad timing of ECB interest rates, energy inflation, and Corona/Ukraine.

Friends of ours are starting in autumn, despite a 70% loan-to-value ratio paying 1.8 percent, KfW is gone, the developer says 30% surcharge for the previous construction contract. Easily 80-90k more expensive than autumn 2021.

What the hell do the traffic light coalition members think they will do about the housing market?

Stagflation, I hear you coming...

Do you really believe that continuing to promote owner-occupied homes is a sensible way to address the problems in the housing market?