Grit Hildebrandt finally found her dream house near the German city of Rostock two years ago, paying more than 10 percent over the asking price to beat the other bidders. She’s now glad she’s on the other side in the country’s red-hot housing market.“When you really like a place and there are so few others available, you just have to bite the bullet,” the 38-year-old banker said by phone. “It’s an absolute seller’s market, and they know it.”Germany’s residential property market has taken off in the last seven years, with apartment prices in the biggest cities rising more than 60 percent, according to Deutsche Bank AG. In Munich, they’ve doubled in value. The result? Homes in 127 German cities were overvalued by as much as 30 percent last year, the government said in a June report, adding that the low level of private indebtedness means the risk of a “correction” appears to be small.
Source: Germany’s Housing Market Is Red Hot, But Don’t Call It a Bubble – Bloomberg
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Craig Erlam
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