Interest rate development current situation. Build now or wait?

"Richtig Leipzig" sounds to me like an extended commuter belt.

Two years ago, I would have said that there are areas that could potentially become cheaper.
Perhaps the only positive effect of Corona is that companies have often realized that employees do not need to be in the office 5 days a week. And thus, longer distances to the workplace become interesting again.
And with that, cheaper areas will be in higher demand.

Regarding tips from relatives and acquaintances:
They keep talking endlessly. They certainly mean well and want to save you from overspending. But they also have no pressure to expand their living space.
It has already been written: when your relatives talk about prices "soon" falling. What time frame do they mean? 1 year? 5 years? 10 years? They won't know.
Your child is now 1 year old. Do you want to start looking for a house when she is 11?
That is 10 years during which she could have already used the garden etc. for playing. I personally always find that an important aspect.

Saxony (direction Leipzig)

Direction Leipzig or directly Leipzig area? I understand your price concerns... Here it has risen sharply in recent years. I do think that the metropolitan regions will soon catch up here in the still relatively inexpensive East. And for that, your income will probably be quite tight soon, even with equity. Even at current prices and quite a distance from Leipzig, you will already have to spend a relatively large percentage of your income on housing. My recommendation: go to a financial advisor or your house bank to get a rough estimate—based on the current situation, without equity. And then save in parallel and look for plots or existing properties. Both are currently alarmingly scarce here. If you have something concrete, you can have it recalculated and then decide. If you continue to save in the meantime, you might also have more equity when it gets serious—unfortunately, it usually doesn’t happen that fast in practice.

In your position, I would look for a builder-free plot of land on which there is no construction obligation. That will already take a lot of time and effort. Whether it is built on immediately or whether you continue to accumulate equity after purchase does not matter so much now or later. A buildable piece of land doesn’t eat bread and is a secure investment in times of scarce building plots.

I forgot to mention the equity. We currently have 20k saved up, which of course we could not spend. Now, some might wonder why we have only saved so little. After all, it has always been our wish. I was unable to work for 2 years due to health reasons back then. And the fertility treatment also cost some money.

The rental prices in the city are even cheaper than where we live. And they are currently rising alarmingly.
Regarding the income situation. My husband works for a company that operates nationwide. Salaries are therefore regularly adjusted (plus another training is coming up), but that’s future talk. Home office is not possible for me, so I am dependent on the city. However, we do not want to stay in this area either. Having a house here is impossible anyway.

Home office is not possible for me, so I rely on the city. However, we do not want to stay in this area. A house here is impossible anyway.

If "the city" is Leipzig, then you must already be quite close to your work because of that, or to a location with an S-Bahn (which the sellers are very much aware of...). I do not believe it will get cheaper in this radius anytime soon. On the contrary, as has already been written: due to Corona, many companies realized that home office is possible – and even more city dwellers realized how nice having their own garden could be. Even if it got so bad that many would have to sell because of missed loan payments – buyers near the city would still be ready.

Regarding the income situation. My husband works in a company that operates nationwide.

Of course, this also carries the risk of being transferred to another branch or production site in today's times.