Germany’s planned forced auctions continue to rise, but at a slower pace, according to a recent analysis of court terminations by the dts News Agency.
By Christmas, around 2,800 court-announced forced auction dates were listed nationwide for the coming weeks and months, a nearly 2% increase from the same time last year.
The growth rate has slowed significantly compared to the same period a year ago, when the number of announced forced auctions decreased by 11% at the end of the year. This marked a turning point, as the number of forced auctions had been consistently declining for years prior.
A forced auction typically occurs when homeowners are unable to pay their mortgages and a consensual agreement with the financing bank fails. Key factors include mortgage interest rates, which, although lower in recent months, are still much higher than a few years ago. Property prices also play a role: if they rise, it is less common for a forced auction to occur, as the property can often be sold freely and potentially at a profit for the debtor.