German house prices are on fire!
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Germany´s housing market price rises have been accelerating for several months. In a country where the housing market has historically been extraordinarily stable, this is a significant shift. The reasons? Strong economic growth, 1.1 million refugees, high work-related immigration, weak construction supply and low interest rates.
The German hedonic price index rose by 8% (7.6% inflation-adjusted) during the year to August 2016 (hedonic indices attempt to compare like-for-like exactly, so are the best measure of house price trends). This is up from a 5.8% rise (5.6% inflation-adjusted) during the same period the previous year, based on Europace figures.
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