scholarly journals The German Housing Market Cycle: Answers to FAQs

2020 ◽  
Author(s):  
Florian Kajuth
Keyword(s):  
Housing Market ◽  
German Housing Market

scholarly journals Who Bears the Burden of Real Estate Transfer Taxes? Evidence from the German Housing Market

2021 ◽  
Author(s):  
Mathias Dolls ◽  
Clemens Fuest ◽  
Carla Krolage ◽  
Florian Neumeier
Keyword(s):  
Real Estate ◽  
Housing Market ◽  
German Housing Market

A look into German housing markets: A bubble call?

2018 ◽  
Vol 21 (4) ◽  
pp. 289-301
Author(s):  
Jan R. Kim ◽  
Gieyoung Lim
Keyword(s):  
Housing Market ◽  
House Prices ◽  
House Price ◽  
Housing Markets ◽  
Present Value ◽  
Present Value Model ◽  
Price Bubbles ◽  
Steep Rise ◽  
Value Model ◽  
German Housing Market

The steep rise in German house prices in recent years raises the question of whether a speculative bubble has already emerged. Using a modified present-value model, we estimate the size of speculative house price bubbles in the German housing market. We do not find evidence for positive bubble accumulation in recent years, and interpret the current bullish run as reflecting the correction of house prices that have been undervalued for more than 10 years. With house prices close to their fair values as of 2018:Q1, our answer to the question is, ‘Not yet, but it is likely soon’.

The alternative financialization of the German housing market

2017 ◽  
Vol 32 (7) ◽  
pp. 968-989 ◽  
Author(s):  
Gertjan Wijburg ◽  
Manuel B. Aalbers
Keyword(s):  
Housing Market ◽  
German Housing Market

scholarly journals A Novel Housing Price Misalignment Indicator for Germany

2019 ◽  
Vol 20 (4) ◽  
pp. e759-e794 ◽  
Author(s):  
Markus Hertrich
Keyword(s):  
Housing Market ◽  
Housing Prices ◽  
Housing Price ◽  
Interest Rate Risk ◽  
Residential Property ◽  
Advanced Stage ◽  
Consumer Prices ◽  
Main Factors ◽  
Fundamental Value ◽  
German Housing Market

Abstract From 2014 until present, housing prices in Germany have been rising faster than consumer prices in all quarters except one, raising concerns about an excessive overheating of the housing market. To assess the vulnerability of the German housing market to a future realignment of prices or even a housing bust, this paper develops a housing price misalignment indicator that is composed of seven indicators, which are commonly associated with the fundamental value of residential property. An empirical application to the most recent data suggests that the German housing market exhibits an overvaluation of approximately 11%, where interest rate risk and a relatively advanced stage of the housing cycle are identified as the main factors fueling these imbalances, while a rather solid debt-servicing capacity mitigates these imbalances since end-2009.

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