“With rising prices and the cost of credit, buyers are forced to negotiate. With their expectations still high, sellers should take advantage of this period to launch the winter sales. Otherwise, their product might remain in stock…”
This is the advice of the real estate advertisement portal Immonot.com, which takes the pulse of the real estate market with notarial offices spread throughout France.
Priority to sale for 76% of notaries
In recent months, little change can be noted in advice from notaries on whether to buy or sell real estate.
“The longer-term forecasts depend not only on expectations of the rise in interest rates, which determines that of mortgage loans, but also on the need to protect once morest economic hazards, remarks Immonot. Stone, like gold, has a reputation as a safe haven, which will influence the decision to build up real estate assets to guarantee our retirement. »
The notaries surveyed by Immonot were 76% in favor of the sale in December, but this proportion has decreased compared to November when it was 81%. The other notaries are 17% advised to buy (as in November) and 7% recommend waiting ( once morest 2% in November).
As far as land is concerned, 50% of notaries advise selling, 34% buying and 16% waiting.
No notary expects prices to rise within two months
With the rise in inflation, credit rates, post-Covid prices, potential buyers are forced to reduce their claims. “We thus find ourselves in a very particular configuration where no one believes in a price increase anymore,” underlines Immonot.
Indeed, among the notaries surveyed, 56% anticipate a drop in prices housing in the next two months, 44% see it staying at the current level and 0% betting on an increase. For land, these figures are only marginally better, the proportions being respectively 47%, 51% and 2%.
“Thus, even if medium-sized cities have seen their attractiveness improve throughout 2022, sometimes to the detriment of large cities, the loss of purchasing power is beginning to weigh heavily on the entire real estate market” , observes Immonot.
Recovery for activity
After a drop in real estate activity during the last months of the year, the situation seems to be calming down slightly with an apparent stability as regards transactions, with the year 2022 recording just over one million sales.
In December, notaries were 69% ( once morest 71% in November) to think that the level of transactions will drop in the next two months. While 27% bet on stable sales and 4% on an increase.
