Construction costs are currently skyrocketing

So currently nothing is moving in the existing properties. I am watching the portals very closely and what I increasingly see are properties marked with "new price!".

The times when huge sums were paid for really any junk and sometimes even for somewhat decent properties are now over. That is my firm conviction. Because for the broad majority (however you define it, I’ll just say household income around €5,000) it simply is no longer affordable.

Recently been in contact with a realtor. His firm conviction: Everyone is now rushing to existing properties because building a) is no longer affordable and b) no longer predictable. So far I cannot see that at all. Especially since there have hardly ever been any building plots here in the region. I think that people who simply can no longer afford it also cannot rush to existing properties. The correction will come ...

The existing stock is sold very well here. Everyone wants existing stock because it is more predictable and has even lower interest rates… The problem is rather new projects in the affordable segment. Often people who finance at the edge with 100 or 110%. This is no longer possible with these interest rates. It used to be the same when interest rates were high. And people rather restricted themselves.

Of course, one can now rush to the supposedly cheap stock. The question is what follow-up costs this will entail. Then you have a house that is possibly not properly insulated and also an old heating system. If energy prices continue to rise, it will get tight there again. In addition, there are always stricter requirements. Such a renovation can eventually reach a point where it becomes cheaper to build new.

I believe there is currently no royal road.

The times when sky-high sums were paid for really every piece of junk and sometimes even for barely decent properties are now over. That is my firm conviction. Because for the broad mass (however one defines it, I’ll just say household income around €5,000) it’s simply no longer affordable.

Recently been in contact with a real estate agent. His firm conviction: Everyone is now rushing for existing properties, because building a) is no longer affordable and b) no longer predictable. I can’t see that at all so far. Especially since there were/here are hardly any building plots in this region anyway. I think the people who simply can no longer afford it also can’t rush for any existing property. The correction will come ...

Unfortunately, you are describing two opposing effects here. If everyone rushes for existing properties, then prices there must stay high with constant supply. The price for existing properties can only fall with rising demand if the supply is massively expanded. But I don’t see that.

Unfortunately, you are describing two opposing effects here. If everyone rushes for the existing properties, then prices there have to stay high given a constant supply. The price for existing properties can only fall with increasing demand if the supply is massively expanded. However, I do not see that.

I have conveyed the opinion of the real estate agent. However, I do not share it and observe something different on the portals. It may of course also be that he just wanted to persuade me to buy the house quickly at the listed price before it rises further.

In my opinion, in the current situation, both existing properties and new builds are unaffordable for the broad masses.

In my opinion, in the current constellation, both existing properties and new buildings are unaffordable for the majority.

Or the demands have to be scaled down again. You can also live well with 1 or 2 kids without controlled residential ventilation and KNX on 110 sqm. Or even with 80 to 90 and an expansion reserve in the attic. Maybe you have to contribute a bit more of your own work again.