For most home buyers, financing a house or condominium is the most expensive purchase of their life.

According to a survey conducted by the mortgage broker Interhyp, rising prices for residential properties are deterring prospective buyers. In the latest edition of the company's annual survey, 55 percent rated residential properties in their respective regions as "slightly" or "moderately" affordable. This was four percentage points lower than a year ago, but higher than two years ago.

Interhyp annually conducts online surveys of around 1,000 people who are interested in buying a property, have been looking for a property in the past two years, or have purchased a property in the past five years. According to Interhyp, the results are representative of this group.

The survey results reflect the turmoil in the real estate market in recent years. The rapid rise in interest rates in 2022 and 2023 meant that many prospective buyers could no longer afford to buy their own home. Two years ago, only half of the respondents rated residential properties in their region as affordable. Since many sellers were unable to sell their properties at the originally hoped-for price, prices fell almost across the board.

This phase is now over; according to Interhyp, residential property prices have risen again by around five percent since January 2024. On the other hand, loan interest rates have fallen slightly again. "This reflects the increased demand for real estate," said Interhyp CEO Jörg Utecht. Accordingly, more than two-thirds (68 percent) of survey participants estimated that real estate prices have increased in the past twelve months.