As a home buyer interested in investing in the real estate market, the recent signs of recovery in real estate financing may be of great interest. There is growing evidence that the market for real estate financing is increasingly recovering.
In the first quarter of 2024 in particular, we recorded a positive trend in terms of brokered financing for residential properties. Interestingly, older properties are particularly in demand, both from homeowners and investors. This could indicate that the real estate market as a whole is experiencing an upward trend.
We see that both homeowners and investors are increasingly focusing on the purchase of residential property. This was reflected in an increase in both the number and volume of brokered financings in the first quarter of 2024 compared to the same quarter of the previous year. This trend is thus continuing and suggests that the residential real estate market may have reached a turning point.
Although the all-clear cannot yet be given, Benjamin Papo, Managing Director of Hüttig & Rompf, is positive about the future. The brighter market and financing environment allows for optimistic forecasts and raises hopes of a further recovery, even if the level of the pre-crisis years has not yet been reached.
It is particularly noteworthy that older and older residential properties are very popular with buyers. These properties are particularly popular with both homeowners and investors, possibly due to price developments in the past year. This trend is also reflected in a slight upturn in the new construction sector, which is picking up speed again after a slump in the previous year.
There are different expectations with regard to the development of building interest rates. Many buyers are assuming that interest rates will fall, but one should not rely on interest rates falling back to historically low levels. The markets have already reacted to possible changes.
Overall, current developments on the real estate financing market offer potential investors interesting insights and could form the basis for well-founded investment decisions. Close monitoring of trends and in-depth analysis could help to identify attractive investment opportunities and achieve long-term returns.
I would like to invite you to our real estate webinar to find out more details about the developments and analyses.
Kind Regards
Matthias Holzmann
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