2023-06-26 12:39:14
It’s a cold shower for salespeople! According to real estate networks, prices must fall by at least 10% for the market to get back on track. Some even mention the figure of 25%. A decline which amounts to tens of thousands of euros at the time of the sale and which, according to experts, is equivalent to the decline in the purchasing power of buyers. “Sellers, especially if they are selling to buy a home, should tell themselves that they may lose on the sale but gain on the purchase.sums up a real estate agent.
For the time being, this decline in real estate prices, which begins to spread everywhere in Franceis still moderate in France, according to the main networks: between -1% and -2% between the first half of 2022 and 2023, according to Orpi and Century 21.Real estate is experiencing a crisis that is not cyclical but structural. Beyond the lack of housing, prices must fall so that supply and demand meet again and the market regains a good dynamism”, insists Guillaume Martinaud, president of Orpi. A barely veiled message for sellers who refuse to make efforts on the price. Consequence: the deadlines keep climbing and are slowly but surely approaching 3 months, both for apartments and for houses.
The surge in prices coupled with the rise in credit rates also caused sales to tumble in the first half. While some hope that the second is less catastrophic, the leading indicators of the first network in France are worrying. The number of sales agreements, which generally precede sales by 3 months, fell by 21% in France between January and May 2023. The fall even amounts to 32% in Paris and Lille. Only Rennes did better than resist with an increase of 13%. The reason? Property prices fell by 17% in the Breton city, where they only fell by 2%, at the national level.
Despite this gloomy context, the French continue to believe in real estate. Nearly 70% of them say they are ready to invest in stone, according to an Ifop survey for Laforêt. The top three reasons are: building wealth (42%), ensuring financial security (36%) and obtaining good profitability (30%). “The French project themselves on a long-term vision, real estate being the investment par excellence to secure their heritage strategy», concludes Yann Jéhanno, president of Laforêt.
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