Why the Rules of the Game Have Changed in the Real Estate Market

Many homeowners still base their asking prices on the sales figures from the boom years of 2021, 2022, or in some cases even 2023. But market conditions have changed significantly since then. Higher financing costs, stricter banks, economic uncertainties, and rising living costs are now having a major impact on buying behavior.

The property itself has often not changed—but the world of buyers has. Anyone who wants to understand the current real estate market should therefore look not only at past peak prices, but also at the reality in which purchasing decisions are made today.

In this article, we explain why the rules of the game in the real estate market have changed, what impact this has on the selling price, and why a realistic view of the market is more important today than ever.

The property is the same—the world around it is not

Many owners wonder why their property does not automatically fetch the same price today as it did just a few years ago. The answer usually does not lie in the property itself.

“The property hasn’t deteriorated. But the broader conditions have changed.”

While low interest rates and banks’ willingness to provide financing drove the market during the boom years, buyers today must calculate much more carefully. Inflation, rising energy costs, and economic uncertainties significantly influence purchasing decisions.

Buyers calculate differently today

A key factor is financing costs.

Example:

• 2022: €500,000 loan at approximately 1% interest
• 2026: €500,000 loan at approximately 4% interest

For many families, this means an additional burden of several hundred euros per month. As a result, the number of people who can afford a property of the same size is decreasing.

From a seller’s market to a buyer’s market

Demand has also changed.

2022:

• 10 to 20 interested parties
• multiple purchase offers
• sometimes bidding processes

Today:

• 3 to 8 prospective buyers
• often only 1 to 2 serious buyers
• more rigorous scrutiny by financing banks

As a result, the market has shifted in many places from a seller’s market to a buyer’s market.

The first few weeks determine success

A frequently underestimated factor is the so-called market window. The first few weeks of marketing are usually the most critical phase.

If a property is listed significantly above current buyer affordability, inquiries, viewings, and purchase offers often fail to materialize.

“The highest price is usually not achieved after six months, but in the first weeks of marketing.”

The longer a property is listed without market response, the more critically prospective buyers view the listing.

Why the market determines the price

Many owners base their expectations on neighboring sales, online listings, or personal perceptions of value. In the end, however, the market determines the achievable price.

“The market determines the price—not the seller, not the realtor, and not the bank.”

The market consists of people who want to buy today and have the financial means to actually do so.

We don’t sell to yesterday’s market

Daily news influences buyer behavior more than many owners realize.

• international conflicts
• economic uncertainties
• inflation
• rising social security contributions
• energy prices
• job cuts in various industries

The owner often views these developments from the seller’s perspective. The buyer, on the other hand, evaluates them simultaneously as a borrower, an employee, and a family member.

“We don’t sell to yesterday’s buyers, but to today’s buyers.”

What is your property worth today?

Every property is unique. Location, condition, lot size, energy efficiency, and current demand influence the actual achievable selling price.

If you would like to know what market value your property can achieve under current market conditions, we are happy to assist you with a free and non-binding market price estimate.

Determine market value online now

Conclusion

Successful real estate sales today are not driven by hope for past peak prices, but by a realistic assessment of current market conditions.

The good news: Even in today’s market environment, properties can be sold successfully and at very good prices. However, this requires that the asking price, target audience, and marketing strategy align with current market realities.

If you would like to sell your property or would first like a realistic assessment, VON POLL IMMOBILIEN Treptow-Köpenick is happy to assist you with advice.

Your contact in Berlin Treptow-Köpenick

VON POLL IMMOBILIEN Treptow-Köpenick assists owners in the successful sale of houses, apartments, and land around Lake Müggelsee, Friedrichshagen, Rahnsdorf, Hessenwinkel, Köpenick, and the surrounding regions.

VON POLL IMMOBILIEN Treptow-Köpenick
Phone: 030 65 66 0 5000
Email: [email protected]
Website: www.von-poll.com