Wanted: 100,000 new donors | SaltWireBENGALURU - Home prices in Germany will fall by more than 5% this year and stagnate in 2024, according to property analysts polled by Reuters who said rents will become even less affordable as more potential buyers shun an expensive market.
With average house prices having surged 25% during the COVID-19 pandemic, higher interest rates and higher living costs in a struggling economy have driven many to rent while they anticipate house prices will fall. House prices were forecast to stagnate next year, an upgrade compared to the 2.0% fall predicted three months ago.
"While borrowing rates are likely to be lower next year than this year, they will by no means be at comparably low levels as during the ECB's zero interest rate policy period," Brzeski said. Analysts who answered an additional question were evenly split on whether purchasing affordability for first time homebuyers would improve or worsen over the coming year.With purchasing affordability not expected to improve much despite predictions of a decline in house prices, pressure on rental markets is likely to increase.
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