by estate 
Understanding the real estate market is key to successful investments and making informed decisions when buying or selling properties. Let’s look at the main aspects that will help you navigate the current situation on the USA and German real estate market.
Current Trends in the U.S. Housing Market
The U.S. housing market in 2025 is characterized by a combination of high mortgage rates, limited supply, and stable home prices. These factors create a challenging environment for both buyers and sellers.
Mortgage Rates: The average 30-year fixed mortgage rate is about 6.3% in 2025, down slightly from 6.7% in 2024 but still well above historical averages.
Home Prices: Despite high rates, home prices continue to rise. The median price is projected to increase by 3.7% over the year. The median price of existing homes is expected to reach $410,700.
Supply: The housing shortage remains a significant issue, with a shortage of about 4.5 million homes. This is due to construction restrictions and the reluctance of current owners to sell due to high mortgage rates.
Overall, the U.S. real estate market in 2025 remains vibrant, with plenty of opportunities for investors, buyers, and sellers despite the challenges that exist.
Current trends in the German real estate market
The German real estate market has undergone significant changes in recent years. After a long period of price growth, housing prices fell in 2023 and 2024, especially in large cities. The main reasons were the increase in interest rates by the European Central Bank and the rise in inflation, which led to a decrease in demand and an increase in supply on the market. However, according to forecasts, stabilization and a slight increase in real estate prices of about 1% per year are expected from 2025 onwards.
Factors affecting the market
Interest rates and inflation: Rising interest rates increase the cost of mortgages, which reduces the purchasing power of the population. High inflation also affects the rise in prices for building materials and services, which in turn is reflected in the value of real estate.
Housing shortage: Despite a temporary decline in prices, housing shortages persist in Germany, especially in the larger cities. A 16.8% drop in building permits in 2024 compared to the previous year exacerbates the problem.
Investment attractiveness: Germany remains attractive to foreign investors thanks to its stable economy and transparent legal system. Real estate transaction volumes are expected to reach 40-42 billion euros in 2025, which, although below the levels of previous years, indicates a gradual recovery in the market.
Advice for buyers and sellers
Buyers: The current situation offers opportunities to acquire real estate at better prices. However, it is important to carefully evaluate properties, taking into account their location, condition and potential for value growth. It is also advisable to pay attention to secondary cities, where prices may be more affordable and growth prospects are significant.
Sellers: In a stabilizing market, it is important to set competitive prices and be prepared for a longer selling period. A quality presentation of the property, including professional photographs and a detailed description, as well as cooperation with experienced real estate agents, can increase the chances of a successful transaction.
Conclusion
The German real estate market in 2025 shows signs of stabilization after a period of correction. Understanding the current trends and factors influencing the market will allow you to make informed decisions when buying or selling a property. Whether you are an investor, buyer or seller, careful analysis and a strategic approach will be the key to success in this dynamic market.
