The housing value index measure dropped to -0.8 % in December 2022, according to Europace AG. This is the first effective decline since 2009, in which the index reached negative 1.9%. In previous years, the index maintained from a low of +3.2% in 2013 to a peak of 13.9% in 2021.
The drop in home prices reflects that the German real estate market has changed since the European Central Bank decided to raise interest rates on housing loans last July.
This step doubled or even tripled the cost of mortgages, scaring many consumers away from the real estate market. German housing loans fell 30% in just 4 months back then.