Construction costs are currently skyrocketing

Or one is simply not willing to pay a certain rate, even if one can still afford it. At the current interest rate, I would probably have to pay about €600 more per month for the same loan to get the same term. I would probably remain a tenant and use the money elsewhere. Because interest payments are not an investment.

That is a very rational point of view, which I basically share. But the project of building a house is connected with many emotions. How much does one accept a loss with one’s own home, which in itself is not profitable? Simply because one wants it and it is one’s own?

I can imagine that some will drop out of the race. But whether the existing property prices will fall (because of increasing renovation costs) or rise (because people still demand owner-occupied housing and due to resource shortages, new construction becomes even more unpredictable), I currently dare not predict. There are arguments for both.

From WiWo:

"A Munich real estate agent observes a break in the property market. Owners are now trapped. Many wanted to sell at the peak and realize that they may have already missed it."

Unfortunately behind the paywall :-( What exactly is the trap? That the profit turns out to be smaller because one was too greedy and miscalculated? In that case, my sympathy would somehow be limited :-) But presumably it is just phrased very sensationally?

This is a very rational point of view, which I basically share. But the house-building project is associated with many emotions. How much does one do to their own home that does not really pay off? Simply because one wants to and it is their own?

It really is like that. Our buyers also change a few things in the house they bought from us, for example, the painting work almost completely anew, new doors, partly new floors. They recently said, "you really shouldn't tell anyone," but I can understand that to some extent. You also want to give the living space a bit of your own personal touch. Nest building and all that. If you have the necessary money, why not?

I also have prices to offer again:

18cm stone wool external insulation, fabric filler, top coat, painting, and dowels cost 120 € net per square meter here.

And the parquet, which I hoarded at 73 € per square meter, is currently online between 90 and 108 € -- so hoarding has paid off here. :cool:

My wife is on short-time work at Audi (not working on the assembly line).

But then (something) with/in production (Ingolstadt/Neckarsulm).

Floor plans are also noticeably fewer.

The first ones will already have short-time work or are about to start. Order books may be full, but that doesn't help if the goods are rotting in the port of Shanghai.

So in the automotive sector there is indeed short-time work - but financially no one has suffered so far, keyword topping up.
and I think exactly the opposite: no matter whether interest rates rise now: how else are people supposed to protect themselves or their money from inflation than through real estate?