Ok, I know I am going to get the brickbats, but in the best run economies of the world, RE prices go up at a rate much LESS THAN inflation. In fact in Germany the prices of houses have fallen in REAL TERMS over a 30 year period.
Why is it so? It is because the Government keeps increasing the supply of houses and interferes in the price at which transactions happen. Needless to say all transactions are through the bank so the Government knows at what prices transactions are happening.
So read on….here is an old article (2014) but still very relevant to know how the German housing market functions. We can just feel terrible about what is happening…but yes read and ….burn!!
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