”The stress is on slightly decreasing prices in the prognosis for development up until February 2012. However, compared to the last prognosis, the outlook is more optimistic,” said Claudia Wörmann, head of analyses at the association.
According to Wörmann, the estate agents make similar predictions for tenant-owner apartments.
One of the reasons is that banks are being more restrictive with their money and that it has become much more difficult to qualify for a mortgage.
Bleak news reports about the state of the economy, coupled with the banks’ more restrictive measures are also contributing to both buyers and sellers feeling worried and taking a step back today, according to Wörmann.
At the same time, real estate agents have noted that those who were active on the property market in the 90s tend to be more laid back about the current situation
”Many realtors are saying that there is a tendency within this group to want to pay off more of their mortgage debts, than those who don’t remember the 90s. Also, they are more reluctant to borrow more than they need. They aren’t as worried about the state of the market either, partly because the current interest rates are low compared to back then,” said Wörmann.