What will the real estate year 2024 bring for sellers?

Although prices are likely to continue falling next year, sellers who purchased their properties before 2018 can still expect good profits. However, particular care should be taken when determining the price, as the risk of creating a property that will remain unsold due to overly optimistic expectations remains high.

A key aspect for property sellers in 2024 is the correct assessment of the asking price. Due to the expected further decline in property prices, overvaluing a property carries the risk of creating a so-called "white elephant" or "dry seller".

This means that an excessively high investment in a property will be difficult to justify due to falling market prices. As a result, the property may be difficult to resell or may result in a loss.

This risk is exacerbated by the current trend of falling prices in the real estate market, as predicted by experts for 2024. Sellers should therefore be particularly cautious and carefully assess the market value before setting an asking price and publishing it on online marketplaces. This is virtually impossible without the guidance of an experienced, high-quality real estate agent.

Previous price trends

According to the Association of German Pfandbrief Banks (VDP), residential property prices fell by an average of 1.7 percent in the third quarter of 2023 compared to the previous quarter. Year-on-year, the decline was even more pronounced at 6.3 percent.

An interesting trend that will continue next year: In general, actual purchase prices have been higher than the asking prices on real estate websites in recent years. After the so-called interest rate shock, i.e., the rapid increase in mortgage rates from 1 percent to 4 percent within a few months, actual purchase prices are now below asking prices.

Sell ​​now?

Especially for those who currently own real estate in less sought-after locations, for example in the countryside or in unpopular urban districts, now may be the right time to sell.

This is because, compared to the purchase price, very good profits can still be made if the property was acquired before 2018.

The same applies to unrenovated buildings or those that do not meet the latest energy efficiency standards. In these cases, selling the property can be an alternative to costly renovations.

Opportunities for sellers

Experts advise sellers to thoroughly familiarize themselves with current, volatile market trends before putting their property on the market. Recently, the pace of price reductions has slowed. However, to ensure your property is sold at a fair market price, professional real estate advice is crucial. A market expert is the best person to consult. A local, reputable real estate agent can provide you with in-depth expertise and personalized service, helping you make the right long-term decision when buying property.

Are you planning to sell your property or residential property? Don't hesitate to contact us. We'd be happy to advise you.

Notes

For the sake of readability, this text uses the generic masculine form. Female and other gender identities are explicitly included where relevant to the statement.

Legal notice: This article does not constitute tax or legal advice for any specific case. Please consult a lawyer and/or tax advisor to clarify the facts of your individual situation.

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