Your ancestor is from Transylvania. (Northern Transylvania?) I'm afraid this does not help you though, as it is still far too large of an area. When searching in Europe, you need the name of the village. I bet you could find the village name if you get your ancestor's original SS5.
Speaking German sounds odd to me for that place and year. I would expect him to speak Hungarian. But remember, you are dealing with the Austro-Hungarian Empire. German was the official language at various times. (Records will be in any or all of: German, Hungarian, Romanian, and Latin.)