Housing - real estate prices rise more slowly - economy

Residential property prices rose again significantly in the second quarter, but at a slower pace than before. From April to June, they increased by an average of 10.2 percent compared to the same period last year, as reported by the Federal Statistical Office. The increase in the so-called house price index weakened for the third quarter in a row: at the beginning of the year it was still around 11.6 percent. "The greatest price increase was in the sparsely populated rural districts," the statisticians determined. Here, detached and semi-detached houses were 13.6 percent more expensive than in the same quarter of the previous year, and condominiums by 11.7 percent. In the seven largest cities of Berlin, Hamburg, Munich, Cologne, Frankfurt, Stuttgart and Düsseldorf, prices for detached and semi-detached houses rose by 12.2 percent and for condominiums by 10.6 percent. According to experts, however, there are signs of a trend reversal on the real estate market due to the significantly higher interest rates. Observers are already reporting falling prices in certain segments.

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