2023-11-24 14:09:02

German property market will slow but no significant correction ahead, central bank says

Logo CNBC
CNBC
By Jenni Reid

Key Points

  • Claudia Buch, vice president of the Bundesbank, told CNBC there had not been a reversal of the overall dynamic in the housing market so there would still be overvaluations.
  • German homeowners are less vulnerable to interest rate rises than some elsewhere due to the high proportion of fixed-rate mortgages.
  • The central bank's Financial Stability Review for 2022 says the German economy is at a turning point following price corrections in financial markets.
AD
AD

Germany's central bank is predicting a slowdown but no significant correction in the country's property market despite warnings of overvaluation, according to a report published Thursday.

Claudia Buch, vice president of the Bundesbank, told CNBC's Joumanna Bercetche: We do see a slowdown in the price growth for residential real estate, but it's not that the overall dynamic has reversed.

So we still have overvaluations in the market, she said.

Continue read on cnbc.com

AD
Logo ING Economics
MarketsBy Wouter Thierie Wouter Thierie2023-11-03 12:32:00
In the second quarter of 2022, Spanish property prices rose again by 8.0% year-on-year. Rising mortgage rates and a weakening economic outlook will dampen...

Logo Investing.com
Markets2023-11-01 06:34:00
Many longtime readers know that I’ve been very critical of the housing market after the massive boom in real estate prices post-COVID. And as we learned from...

Logo CNBC
EconomyBy Karen Gilchrist2023-11-15 07:24:27
Key Points The U.K. property market could be on the verge of a major downturn, with some market watchers warning of a collapse in prices of up to 30%. New...

Logo Daily Mail
Business / FinanceBy Alex Brummer2023-11-02 21:56:33
The gloomsters are back on trend. Having worried us that rising energy prices and inflation will condemn everyone to shopping in food banks, they now predict...

Logo Daily Mail
Business / FinanceBy Lucy White2023-10-27 21:18:34
HouseE prices are set to slide for the next two years as higher mortgage rates bite, Lloyds Bank has warned. After pandemic lockdowns fuelled red-hot...

Logo Bloomberg
MarketsBy Steven Arons2023-11-04 12:17:29
Mortgage borrowing costs in Germany have surged in recent months to hit the highest level in a decade as the European Central Bank raises interest rates. The...

Logo InvestorPlace
MarketsBy Jeff Remsburg2023-11-01 01:31:53
Mortgage rates kill housing … PCE numbers mean the Fed will keep hiking … oil investors are rolling in record profits … Q3 GDP manipulation? … Dogecoin...

Logo BBC
Business / Finance2023-11-03 01:46:04
By Robert Cuffe & Christine Jeavans BBC News The Bank of England is expected to increase interest rates above 2.25% on Thursday, feeding through into...

Logo CBS News
MarketsBy Cbs News2023-11-02 19:39:17
Federal Reserve policymakers are meeting Wednesday and it's likely they will raise interest rates by another 75 basis points in a continued effort to curb...

Logo InvestorPlace
MarketsBy Shrey Dua2023-10-31 19:33:40
30-year fixed mortgage rates averaged just 7% last week, the first time in 20 years, according to Freddie Mac. With the Federal Reserve expected to announce...

Logo CNBC
Business / FinanceBy Diana Olick2023-11-07 16:42:09
Key Points In October, just 16% of consumers said they thought now is a good time to buy a home, according to a monthly survey by Fannie Mae. A higher share...

Logo The Business Journals
Business / Finance2023-11-07 20:38:36
The national housing market slowdown has been one of the headlining stories of 2022, after a spike in mortgage rates in the spring turned the heat off what...

Logo Nasdaq
Business / FinanceBy The Motley Fool2023-11-19 15:32:14
Image source: Getty Images Gear up for a recession in 2023. That's the message the media seems intent on conveying, and understandably so. For months on end,...

Logo Daily Mail
Business / FinanceBy Mike Sheen2023-10-27 06:00:49
A toxic mix of high inflation, rising interest rates and feeble economic output could nudge Britain into a severe recession next year. Markets await the next...

Logo Bloomberg
MarketsBy Jordan Yadoo2023-11-04 10:00:05
Soaring US interest rates have done little to curb inflation, but they’re hitting housing hard. The surge in borrowing costs has eroded affordability for...

Logo InvestorPlace
MarketsBy Samuel O'brient2023-11-17 17:05:05
The housing market crisis isn’t over yet. Plenty of experts have speculated as to how high mortgage rates can climb and how far the market has to fall. While...

Logo CNN
MarketsBy Erik Lundh2023-11-22 14:59:52
Editors Note: Erik Lundh is a principal economist at The Conference Board. The opinions expressed in this commentary are his own. Read more opinion at CNN. A...

Logo Daily Mail
Business / FinanceBy Fran Ivens2023-11-03 15:03:22
Savills has forecast a 10 per cent fall in house prices next year, a significant downgrade from the one per cent drop the estate agency predicted in May....

Logo ING Economics
Markets2023-11-21 12:39:00
For now, higher-than-expected inflation data trumps the mounting concerns about the housing market for the Riksbank. A 75bp rate hike looks likely on...

Logo Bloomberg
MarketsBy Ye Xie2023-11-23 00:00:00
Fifteen months ago, Lu Ting equated Beijing’s crackdown on the housing market to former Federal Reserve Chair Paul Volcker’s efforts to cool inflation that...