Real estate prices are now collapsing in Germany. it will be very difficult for monetary policy to inflate this bubble again. We will see what the ECB comes up with to prevent a banking crisis when these unrealized price adjustments become visible in the balance sheets.
15 sats \ 3 replies \ @mixoo 22 Dec 2023
Finally....
German Millennials have waited for this for quite a while...
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10 sats \ 1 reply \ @TomK OP 22 Dec 2023
And they should wait some more years before they run to the banks and into tje debt trap
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0 sats \ 0 replies \ @mixoo 22 Dec 2023
Agree
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0 sats \ 0 replies \ @orthzar 22 Dec 2023
If they're employed for long enough to pay-off the mortgage -- then they might get to become home owners. But any hiccup (e.g. a few years of un-employment) and they'll be nothing more than renters with a lot of debt.
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10 sats \ 3 replies \ @billiam 22 Dec 2023
This means that it will soon be possible to buy a cheap (and ugly) 1 to 2 room 25-35 m² apartment in a big german city. Interest will go down, I'm pretty sure. There are A LOT of singles, students and migrants looking for a cheap apartment to rent and there are not enough rental apartments on the market in Germany. For landlord it means: A loss of rent is almost zero because in Germany the state pays the rent for welfare recipients.
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0 sats \ 2 replies \ @TomK OP 22 Dec 2023
Right. But do You really want to live there? Or do You think of it as an investment?
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0 sats \ 1 reply \ @billiam 22 Dec 2023
Of course not live there. Investment only.
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10 sats \ 0 replies \ @TomK OP 22 Dec 2023
Now I can have my christmas beer without worries. Cheers
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0 sats \ 0 replies \ @mx12art 4 Mar
Economic ups and downs are part of the game. Trying to control everything can backfire. Real estate prices in Germany are falling, and it's tricky for policies to fix it. Let people navigate these changes, and we'll find our way through.
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0 sats \ 1 reply \ @bordalix 24 Dec 2023
There seems to be a correlation between the ECB balance sheet and Germany house prices. I saw this graph in February, would like to see a new version of it. Does anyone here has access to Bloomberg?
https://twitter.com/Schuldensuehner/status/1627222138485628929
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0 sats \ 0 replies \ @TomK OP 24 Dec 2023
Your observation is correct. But You can find a positive correlation between the cb bs (balance sheet) and any asset class. Anything follows more or less the global liquidity which is partially provided by tje CB's intervention at the bond markets.
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0 sats \ 0 replies \ @dave9000 22 Dec 2023
It was about time. Also how do you expect people to have children when they can't afford to buy a home is beyond me.
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0 sats \ 1 reply \ @xz 22 Dec 2023
Hey @TomK, 'Statistiches Bundesamt' this translated as Federal Statistical Office.
Does that mean Bundesbank stats. Deutsche Bundesbank is the same thing?
That's quite notable. I wonder how many people see this as a positive, healthy thing, at least, you can't have a healthy body if you keep pumping it with steroids conclusion.
Or are people being cudgelled over the head by the news to think the sky is falling. If I was a home owner in this economy, I'd by sighing relief that the economy might actually start to show signs of life, properties sold, rental prices more affordable..
I literally have no idea as all I've ever known in my life is the mandate from heaven that home prices must increase year on year to infinity, even if that means a Snickers bar does pretty much the same thing.
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5 sats \ 0 replies \ @TomK OP 22 Dec 2023
No no, they are two different institutions. This one here only is collecting econ data. The Bundesbank has a 2nd mandate: destroying the purchasing power in the name of the ECB
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0 sats \ 0 replies \ @fred 22 Dec 2023
Keep stacking sats and you might just be part of the solution to real estate in times like this
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0 sats \ 3 replies \ @GlobalThreat 22 Dec 2023
i'm waiting for commercial real estate to bottom
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0 sats \ 2 replies \ @TomK OP 22 Dec 2023
It has a loooong way to go
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0 sats \ 1 reply \ @GlobalThreat 22 Dec 2023
its $1-2/sqft/month here and I'd like to open a 24/7 lounge with tvs and coffee.
waiting for 25 cents a square foot.
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0 sats \ 0 replies \ @TomK OP 22 Dec 2023
Good luck and have a nice christmas time
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0 sats \ 1 reply \ @shado_op 22 Dec 2023
This is also interesting. The total value of commercial property deals in Frankfurt down 86%...
Surely Germany must be heading into a full on recession?
https://www.cushmanwakefield.com/en/germany/news/2023/10/investmentmarkt-frankfurt
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30 sats \ 0 replies \ @TomK OP 22 Dec 2023
Germany is in a recession for more than a year
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