2023-06-17 17:09:30
Loïc Cantin, President of La FNAIM, is the Alex Reed of Mon Podcast Immo. At the microphone of Ariane Artinian, he talks regarding the drop in sales and the drop in prices and talks regarding the 2nd biggest drop since 1967. He also talks regarding the repercussions of the crisis and the rise in interest rates for real estate agencies and returns to the opinion of the Competition Authority on the excessively high fees of real estate agents.
At the microphone Mon Podcast Yes by Ariane Artinian, Loïc Cantin, President of La FNAIM, comments on the latest economic report on the housing market published by the Federation.
Impossible to ignore this observation, the market is turning. For Loïc Cantin, with the crisis we are going through in real estate, the sector is experiencing the second largest drop in real estate transactions since 1967. The market should experience a landing in volumes in 2023 with 950,000 transactions carried out, i.e. a 15% drop. compared to 2022.
The ECB keeps pressure on rates
And we cannot rely on the ECB’s rate hike policy to fix the situation. This keeps pressure on rates. Compared to the last crises, like in 1991 and 2008, this year, there is no stock and the rates are soaring…” Where are we going to find the essential elasticity to restore momentum, a spring to the market that needs it and restore borrowing capacity to the French ? asks Loïc Cantin.
Rising Rates Rapidly: An explosion in the market
The rise in interest rates was the detonator in the real estate market. Household loan interest rates have tripled in 18 months. At this rate, it will be by 4 in 24 months: the borrowing capacity of the French is largely planed. Many first-time buyers are shut out of the credit market. And the shock is brutal.
As a result, the fall in prices has been triggered since 1is February 2023, all sectors combined. The whole of France is concerned. The French will have to deal with it.
The FNAIM foresees a fall in prices in real value of 10% on real estate prices. But, for Loïc Cantin“to be able to adapt to the decline in the borrowing capacity of the French people, constrained by the rise in interest rates, we must go beyond: A 12% to 15% drop in selling prices would be needed, excluding inflation , to restore the purchasing power of the French.«
The period of high prices is over
« The period of high prices is over, we will have to resign ourselves to having affordable pricescontinues the president of the FNAIM. Real estate professionals will have to regulate the market. Yesterday they had 4 sales orders, they were selling 3. Tomorrow they will have 40, they will be selling 1. They will have to do their job differently. Obviously, the crisis will be synonymous with reductions in jobs and staff in real estate agencies.
The opinion of the Competition Authority on the fees – too high for real estate agents? ” It’s a dependent report, but what a bad analysis of our professions, what a bad interpretation“, concludes Loïc Cantin.
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