German Housing Market is Heating Up

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

Craig Erlam

Senior Market Analyst, UK & EMEA at OANDA
Based in London, Craig Erlam joined OANDA in 2015 as a market analyst. With many years of experience as a financial market analyst and trader, he focuses on both fundamental and technical analysis while producing macroeconomic commentary. His views have been published in the Financial Times, Reuters, The Telegraph and the International Business Times, and he also appears as a regular guest commentator on the BBC, Bloomberg TV, FOX Business and SKY News. Craig holds a full membership to the Society of Technical Analysts and is recognised as a Certified Financial Technician by the International Federation of Technical Analysts.
Craig Erlam