German real estate market shows stability with rise in existing home prices

The German real estate market showed overall stability in July, according to the Europace House Price Index (EPX). The total index rose slightly by 0.19% to 222.22 points, representing a 1.44% increase compared to the previous year.

Significant movement was observed in the segment of existing single-family and two-family houses, where prices rose by 0.89% in July. On an annual basis, prices for these existing homes are 1.79% higher than last year. In contrast, the market for condominiums saw a minor decline of 0.03%, remaining nearly flat compared to the previous year.

Stefan Münter, Co-CEO of Europace, noted that while the homeownership market has stabilized, recovery may be slower than expected. He cited weak overall economic dynamics and a lack of income impulses as factors slowing the transition from renting to owning, suggesting buyers and sellers may take longer to reach agreements on pricing.