In normal times interests and homeprices are inversely proportional. Just homeowners will try to keep selling at higher prices until doubt creeps in the system and people start selling lower because prices might start dropping even lower.
Risky move to buy now certainly if interests keep going up.
No one knows how the market will develop. But high interest rates paired with high property costs make it not an attractive market at the moment.
Anecdotally in our neighborhood during the Covid housing boom a house would go on sale and sell in a week, now I’m seeing houses stay for sale for several months already.
(one house got bought for 300k in 2020 and they tried selling for 390k again after 2.5 years,… With 0 work done in the house… No… Just no that doesn’t fly anymore)
Prices are dropping. I see constantly the “New price” tag where the asking price has reduced with 10%. Owners still think they can get the price of 2 years ago but that won’t fly anymore. We’re in a buyers market now.
I just looked on immoweb, and I don’t think the prices are dropping at all.
I bought my apartment a year ago, for 165k with 1.4% interest. If look again in my same neighborhood and I look for the same square metres, same number of bedrooms, balcony, no renovation work that needs to be done etc, every single apartment listed is more expensive than mine.
Rising interest rates and *still* very high prices.
We were lucky to still lock in a mortgage at 3,28% fixed last week.
At the 4% most banks seem to be trending towards I don’t think we would have bought either to be honest. We would be looking at repayments of over 2000 a month.
Having said that, I hope housing prices don’t start dropping just when we bought one 🙂
Rising prices were always coupled to declining interest rates.
Today rates are rising.
Today energy costs are going up.
Today renovation costs go up.
This should logically mean that prices will go down. Today people don’t have to sell yet. That will change when the recession hits.
Only epc a houses on prime locations will keep their value more or less.
As a consequence, people are now loaning 25 years instead of 20 years.
8 comments
In normal times interests and homeprices are inversely proportional. Just homeowners will try to keep selling at higher prices until doubt creeps in the system and people start selling lower because prices might start dropping even lower.
Risky move to buy now certainly if interests keep going up.
No one knows how the market will develop. But high interest rates paired with high property costs make it not an attractive market at the moment.
Anecdotally in our neighborhood during the Covid housing boom a house would go on sale and sell in a week, now I’m seeing houses stay for sale for several months already.
(one house got bought for 300k in 2020 and they tried selling for 390k again after 2.5 years,… With 0 work done in the house… No… Just no that doesn’t fly anymore)
Prices are dropping. I see constantly the “New price” tag where the asking price has reduced with 10%. Owners still think they can get the price of 2 years ago but that won’t fly anymore. We’re in a buyers market now.
I just looked on immoweb, and I don’t think the prices are dropping at all.
I bought my apartment a year ago, for 165k with 1.4% interest. If look again in my same neighborhood and I look for the same square metres, same number of bedrooms, balcony, no renovation work that needs to be done etc, every single apartment listed is more expensive than mine.
Rising interest rates and *still* very high prices.
We were lucky to still lock in a mortgage at 3,28% fixed last week.
At the 4% most banks seem to be trending towards I don’t think we would have bought either to be honest. We would be looking at repayments of over 2000 a month.
Having said that, I hope housing prices don’t start dropping just when we bought one 🙂
Rising prices were always coupled to declining interest rates.
Today rates are rising.
Today energy costs are going up.
Today renovation costs go up.
This should logically mean that prices will go down. Today people don’t have to sell yet. That will change when the recession hits.
Only epc a houses on prime locations will keep their value more or less.
As a consequence, people are now loaning 25 years instead of 20 years.