German property market will slow

cnbc.com/2022/11/24/bundesbank-sees-property-market-slowdown-but-not-a-correction-ahead.html

Claudia Buch, vice president of the Bundesbank, told CNBC there had not been a reversal of the "overall dynamic" in the housing market so there would still be overvaluations.

- German homeowners are less vulnerable to interest rate rises than some elsewhere due to the high proportion of fixed-rate mortgages.

- The central bank's Financial Stability Review for 2022 says the German economy is at a "turning point" following price corrections in financial markets.

Germany's central bank is predicting a slowdown but no significant correction in the country's property market despite warnings of overvaluation, according to a report published Thursday.

Claudia Buch, vice president of the Bundesbank, told CNBC's Joumanna Bercetche: "We do see a slowdown in the price growth for residential real estate, but it's not that the overall dynamic has reversed."

"So we still have overvaluations in the market," she said.

The report notes the strong rise in German residential property prices from 2010…

This story appeared first on cnbc.com, 2022-11-24.
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