Eurozone Housing Market Shifts: A Decade of Rising Prices Finally Give Way to Affordability

The real estate market in the eurozone has experienced a shift, with housing prices dropping by 1.1% across all countries using the common currency. This marked the first decrease since 2013, when the region was facing a financial crisis. After nine years of rising prices, houses became more affordable. However, this decrease was not seen in most countries, including Spain, where prices continued to rise.

Germany and France, the two largest national markets in the eurozone, saw significant drops in housing prices, dragging down the overall Eurostat House Price Index. Other countries such as Finland, Austria, and Slovakia also experienced declining prices. On the other hand, 13 countries in the eurozone saw prices continue to rise, albeit at a slower rate than before.

Factors influencing the varying housing prices across countries include the structure of mortgage markets, interest rates, and the impact of inflation on demand. The covid-19 pandemic played a role in the market fluctuations, with housing prices experiencing significant increases before leveling off and even decreasing in some countries.

Despite the overall decrease in housing prices in the eurozone