The German housing market's weakness is showing up everywhere except in prices
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https://think.ing.com/articles/the-german-housing-markets-weakness-is-showing-up-everywhere-except-in-prices/
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4 itemsGerman housing market put to the test again
The German housing market’s weakness is showing up everywhere except in prices
Per the full note [source], the German housing market is illustrating a peculiar scenario where rising mortgage rates and declining affordability coexist with stubbornly high property prices. Despite a 100 basis point increase in mortgage rates and a resultant 1.5% drop in mortgage loan volumes, house prices in Germany have shown unexpected resilience, with a quarterly increase of 0.3% and a year-on-year rise of 0.6% in Q2 2026. This dynamic underscores a housing market fundamentally constrained by supply shortages that mitigate price corrections, even amidst weakening demand and escalating operational costs for consumers.