2023-06-14 04:26:00
Real estate: The number of sales begins to fall in France
In its monthly analysis of the real estate market for June 2023, published on June 13, 2023, the FNAIM announces the color. As expected, the number of sales is down in France. The record, set in 2021, should therefore only be a memory.
Because the fall is significant. After 1.174 million sales closed in 2021, only 1.115 million sales were signed in 2022. A level that is still very high and still falling. At the end of March 2023, according to the federation, 1.069 million sales were signed over one year. That is more than 100,000 less than in 2021.
In one year, sales have therefore fallen by 9%, according to data from the FNAIM. Blame it on rising mortgage rates, the increase of which does not seem close to stopping.
Price rise begins to slow
The increase in real estate prices for several years (2016 according to the FNAIM) then the increase in credit rates since 2022 has greatly reduced the purchasing power of buyers. The latter therefore began to abandon their project, or to negotiate with the sellers. As a result, prices began to fall.
And they have 1is June 2023 the increase in prices over one year remains positive at +2.9%, it is slowing down. In February 2023, the year-on-year increase was still 6.3%, underlining the FNAIM. But, above all, a first drop was recorded over three rolling months. Between 1is March and the 1is June 2023, real estate prices fell by 1% in France. It’s not much and it’s far from offsetting the previous increase and the rise in rates, but it’s good news. The market is turning around, and the price peak has been reached.
Towards a 5% drop in real estate prices?
The unfavorable economic situation for buyers should have the expected effect: a significant drop in real estate prices in 2023. In any case, this is what the FNAIM predicts. ” We expect this deterioration to continue in the weeks and months to come. Over the whole of 2023, prices are expected to fall by around 5%… which would represent a real drop of almost 10% combined with inflation », announces Loïc Cantin, president of the FNAIM.
Buyers therefore have an interest in postponing their project. They might just get a better price. But they must also calculate the rise in rates, which makes credit more expensive. It will continue: the rates have exceeded 3% on average for all durations combined, and the banks would like them to reach at least 4%. Which will not be a problem: the Banque de France has confirmed that the monthly payment of the wear rate will be maintained throughout 2023.
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