House price rises remain above 10 percent for fifth quarter in a row in Germany
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Loading... - Sergio Felix
- 13 Oct 2022
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The cost of buying a house in Germany rose at break-neck speed once again in the third quarter of 2022. But there are signs that a slowdown on the housing market could be on the horizon.
House prices up 10,2 percent in Germany in Q3 2022
Average sale prices for houses and apartments in Germany rose by 10,2 percent in the second quarter of 2022 compared to the same quarter of the previous year. As the Federal Statistical Office (Destatis) reports, this is the fifth quarter in a row that the rate of increase has remained above 10 percent.
According to Destatis, prices are continuing to rise the quickest in rural regions, where house prices rose by 13,6 percent compared to the same quarter of the previous year. However, this doesn’t mean that prices aren’t rising in German cities as well: housing in the country’s biggest seven cities (Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf) cost an average of 12,2 percent more in the third quarter of 2022 compared to the previous year.
The price increase was the weakest in outer-city areas (e.g. commuter towns around large cities), with house sale prices up by “only” 7,8 percent compared to the previous year. This is the first time since the first quarter of 2021 that the rate has been in the single digits.
Increases slowing, but falling house prices unlikely
There are however some signs that the momentum on the housing market might be slowing. Destatis reported that price increases in both cities and rural regions were consistently weaker than in previous quarters, a conclusion backed up by a recent Immoscout24 report that showed that high interest rates were dampening applications for mortgages and therefore curbing demand. Read More...
