«The craze for green houses seems to be over“. Popular with households since the end of confinement, houses, whose sales are at their lowest, are less popular, according to Me Élodie Frémont, notary in Paris. Due to soaring credit rates, more and more households also do not have the means to realize their real estate project. Two figures to prove it.
The first: 303 euros. This is the increase in the monthly payment (for a loan over 20 years), in just over a year, to buy a 100 m² house in Île-de-France. Last January, a borrower had to repay 1651 euros each month to his bank for such an acquisition. According to the forecasts of the notaries, this amount will rise to 1954 euros next April. That is an increase of 18%. The second digit? 15.5 m². It is the decline in real estate purchasing power (the surface area accessible with 250,000 euros) of home buyers in the Paris region. Concretely, for a budget of 250,000 euros, you will have to settle for an 84.5 m² house next April, whereas you could have hoped to buy a 100 m² property in January 2022. That is the equivalent of a large bedroom.
Modest purchase candidates
«Part of what is referred to as the call of the green was also a lower price call», Analyzes Alain Tourdjman, director of economic studies at BPCE. The situation has changed: the price of houses is rising and that of apartments is falling. From then on, the houses become less attractive. Especially since the candidates for the purchase are, for the most part, modest because they live in small towns, according to INSEE. And are therefore very sensitive to the rise in the cost of credit. This forces them to postpone or even cancel their real estate project.
What about apartments? The observation is identical, even if the candidates for the purchase will be slightly less impacted. You will have to pay 276 euros more (2305 euros against 2030 euros) than in January 2022 to repay your credit. That’s a 14% increase! At the same time, your real estate purchasing power will drop by almost 8 m². Instead of 65 m² (in January 2022), you will have to make do, with a budget of 250,000 euros, with a 57 m². One less big kitchen.