“Sellers understand that rates are falling”: why real estate prices may not decrease anymore

by time news

2024-09-16 06:25:36

Some have expected a drop in prices so that the market can recover. Effective reduction in 2023 but little. And that is likely to be temporary. “Prices are falling but not enough», Commentary Élodie Frémont, president of the real estate accounting and notary commission in Paris. The decrease in prices can only be triggered by a deep dispute between buyers and sellers around the value of the property, according to Louis du Clary, founder of Enchères Immo, a foundation that organizes interactive sales in the form of sales. This gap exists today but is not increasing, according to the Gapi index, an index for comparing the expectations of sellers and the offers of buyers and the statistics of professionals, developed by Enchères Immo, in about 60 days.

«Sellers are close to professional estimates. They become aware of the market constraint and the need to get closer to a professional estimate if they want to sell. While the gap between sellers’ expectations and buyers’ offers reached 11% in June 2023, we see that it has remained around 7% since May.», notes Louis du Clary. This index is based on more than 2,000 transactions from the beginning of 2023. These are not recorded sales but contracts in principle, which makes it possible to obtain more recent data, dating from the month of September . Also, the gap between the seller’s expectation and a real estate estimate is 3.9%. “Even if the sellers agree to approach professional estimates, apartment prices will not drop by 10%. Sellers understand that rates are falling, so buyers have more purchasing power“, he explained.

Rates fall therefore prices rise

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