In the wake of recession and interest rate spikes, the German real estate landscape is undergoing a profound transformation. The Europace House Price Index for Existing Homes unveils a decline, contrasting sharply with the surge in new building prices.
Explore the nuances of this paradox, shaped by stringent environmental regulations and the escalating costs of refurbishing older properties. Green politics have their price... good luck!
House prices coming down is a good thing IMO.
I agree they kicked some own goals with dismantling their nuclear plants.
reply
But keep in mind that the banks are sitting on billions of unrealized losses due to the bond market crash. If now the real estate bubble implodes they are losing the 'value' of their 2nd colateral. They'll be totally undercapitalized
reply
Right, there are probably many other effects.
reply
Input costs for new home construction really spiked over the past few years, too. It's Mises' Master Builder writ large.
reply
Yes. But they came down last year. It's mostly because of climate stupidity and overregulation.
reply
It wouldn't be the first time Europe radically underestimated the costs of those policies.
reply
It won't be the last time. Davos is in full control and they closed the intellectual and media curtain to kill free speech and open discourse
reply
We're starting to see that pushed back against over here. I'm sure something analogous will pop up over there eventually.
reply
'Drill, baby, drill!' Will be the winning campaign.
reply
I wish. Even in America that's hard to imagine.
reply
The moment the recession bites the narratives will change. But it has to sink into the brains of the masses. Therefore it needs to get muuuch harder to surpass the MSM propaganda that's playing the 'soft landing' narrative.