Buying real estate is becoming increasingly difficult for many prospective buyers. At least, this is what the Immowelt Group assumes due to the key interest rate increase of the European Central Bank (ECB) and the associated expected increase in construction interest rates. If a family wanted to buy a house in Stuttgart, for example, it could only take out a loan of 322,000 euros in the 3rd quarter of 2022 to remain at a healthy housing cost burden. In the first quarter of 2022, they could still have taken out a loan of 431,000 euros. The affordable loan amount has thus decreased by 109,000 euros due to the increase in interest rates.
Overall, the Immowelt Group has examined developments in 14 major cities in Germany and identified reduced loan amounts in all of them. In addition to Stuttgart, Munich and Frankfurt am Main are also hard hit: with an interest rate that was still 1.3 percent in the first quarter of 2022 and rose to 3.5 percent in the third quarter of 2022, the affordable loan amount in Munich shrinks to 318,000 euros, according to the Immowelt Group, and is thus reduced by 108,000 euros. In Frankfurt am Main, the affordable loan amount is now 314,000 euros. Compared with the first quarter of 2022, it has thus reduced by 106,000 euros.
The Immowelt Group figures are examples based on a number of assumptions. For example, the median income of 1.5 full earners plus child benefit was assumed as the household income of a family. By way of background, the key interest rate was raised to 2 percent by the ECB at the end of October. The key interest rate refers to a fixed interest rate at which commercial banks can borrow money from or invest it with central banks. The key interest rate is raised so that less money is available on the market, making the individual euro worth more and reducing inflation. For consumers, however, this is accompanied by increased construction interest rates, among other things. This has an impact not only on prospective buyers, but also on property owners who need follow-up financing. They now have to pay higher rates for this.
Sources: immowelt-group.com/verbraucherzentrale.de/wavepoint.de
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