Real estate market 2024: what sellers can expect now

If you sell, sell now. Many experts expect prices to bottom out in the coming year. This means that prices will move sideways or fall only slowly. This would increase competition between real estate offers.

After the number of inquiries for properties in 2023 was significantly lower than in the previous year, many market experts expect better purchase rates for 2024. This is because the major uncertainty factors have largely been eliminated.

Energy prices have normalized and inflation has also fallen noticeably. Building interest rates have leveled off at around 4 percent. Leading economists do not expect the ECB to raise key interest rates any further and thus also the cost of real estate loans. Nevertheless, the overpricing of real estate resulting from the low-interest phase has not yet completely disappeared from many markets.

According to the Europace house price index, prices are falling more slowly

According to the Europace house price index, the period of major price reductions is already over. Some experts are therefore assuming a sideways movement. This would mean that in some regions of Germany, prices are in balance with financing offers and that this is stimulating inquiries. However, Europace primarily evaluates the loans granted. Those target groups that are currently unable to participate in the market because it is simply too expensive are not taken into account.

Price increases are therefore unlikely in 2024 if the key interest rates are not lowered by the ECB. In cities, further price reductions are also more likely in the coming year, as price levels of EUR 4,500 per square meter or more with an interest rate of 4 percent are hardly affordable even for high earners with net household incomes of EUR 5,000 or more.

Why now is the right time to sell a property

If you currently own property in less sought-after locations, for example in the countryside or in unpopular districts, now may be the right time to sell. However, the price must not be overpriced. You will still realize good profit-taking compared to the purchase price. The situation is similar for unrenovated buildings or those that do not comply with the latest energy guidelines. Here, a sale can be the alternative to a cost-intensive refurbishment and still generate good returns.

Opportunities for sellers

Experts advise sellers to keep a constant eye on price trends before selling. It should be borne in mind that the prices recorded by the notary in 2024 are significantly lower than the asking prices in many locations.

It is already becoming apparent that real estate offers are increasingly competing with each other because, in contrast to last year, there is much more supply on the market. If prices in the major cities continue to fall, this trend will intensify and reduce profit-taking.

To ensure that your property is sold in line with the market, advice from a real estate professional is crucial. A market expert is the best contact for this. A local quality estate agent can help you with in-depth expertise and personal service. They can help you make the right long-term decision when selling your property.

Do you intend to sell your property or residential property? Do not hesitate to contact us. We will be happy to advise you.

Notes

For reasons of better readability, the generic masculine is used in this text. Female and other gender identities are explicitly included where this is necessary for the statement.

Photo: © Wordliner/ Image created with OpenAI's DALL-E