ᐅ Future Building Cost Trends Over the Next 3-5 Years

This topic has come up very often lately, and each time the discussion shifts to location factors, personal preferences, commuting distance, interest rate trends, family planning, and so on.

My conclusion is this: when planning a construction project, you can make far more mistakes by choosing the building plot than you can compensate for by trying to pick the perfect building time. Always keep in mind: land prices only drop because people like you and me can no longer or no longer want to build. This means you don’t personally benefit from the lower prices, because you are part of the herd of prospective builders who no longer have the funds. Or how else could it be possible that nobody wants to build so that prices fall, yet you alone still decide to build as an exception?

I don’t understand these question(s) either. Construction costs will not decrease. At best, the rate of price increase will slow down. However, the construction industry lobby will counteract this by maintaining prices through new standards and energy saving regulations.

One should be a building contractor....

If I had to bet, I would say that house prices will decline over the next five years.

It feels like the prices for existing homes have already peaked.
One to two years ago, I hardly found anything below 500,000 (about 500k) in my area. Now, I keep seeing properties in that range. But as I said... it’s just a feeling.

Everything ultimately depends on interest rates. And I don’t believe such a low interest rate phase will last forever. The ones who will win are those who have saved well and can afford the lower house prices without having to worry much about the interest rates. But that’s not something everyone can do...

Farilo schrieb:

If I had to bet, I would say that house prices will fall over the next 5 years.

It feels like prices for existing homes have already peaked.
1-2 years ago, I could hardly find anything under 500k. Now I keep seeing properties at that price level. But again... this is just a feeling...

Everything really depends on interest rates... And I don’t believe such a low interest rate period will last forever. The winner will be the one who has saved well and can afford the lower house prices without having to worry much about interest rates. But not everyone can do that...

Really? Especially now that even the US has cut its key interest rate for the first time in 10 years to avoid stalling the economy! I would have thought rates couldn’t go any lower, but as we can see, they still can.

Zaba12 schrieb:

Really? Especially now that even the Americans have lowered their key interest rate for the first time in 10 years to avoid stifling the economy! I would have thought it couldn’t go any lower, but as we can see, it can.

That may be... But you know, everything comes to an end...
I would actually be very happy for the current buyers if I’m wrong.
Personally, I’m out of the equation anyway, so I don’t have a horse in this race.

And, one must not forget, people simply pay for everything!
I recently talked with a friend about his, in my opinion, unnecessary cigarette consumption. I said he would probably keep smoking even if a pack cost 6 EUR (about $6.50).
Well, his pack already costs over 7 EUR (about $7.60) for 24 cigarettes!

So, based on some more or less in-depth online research, I still think interest rates will rise soon (within the next 5 years).

However, I wouldn’t be shocked if it only happens in 7 to 10 years...