2023-06-13 09:47:48
After resisting, real estate prices are now starting to fall. Over the last quarter, prices fell sharply by -1%.
This is unheard of! Prices are falling, bearing the brunt of the slowdown in the real estate market. The market therefore reversed. Even if their growth is slowing down, prices remain slightly up however: +2.9% ( once morest +6.3% in June 2022). Over the last quarter, the fall is much more marked, since prices are down sharply by -1%. ”
We expect this deterioration to continue in the weeks and months to come. Over the whole of 2023, prices should experience a drop of around 5%… Which would represent a real drop of almost 10% combined with inflation
!”, Says Loïc Cantin, president of Fnaim, a trade union organization that represents real estate professionals, during a press conference on Tuesday.
Houses suffered the biggest drop in prices, with a decline of -1.7% over the last three months, once morest stagnation in the price of apartments. ”
Only ski resorts and seaside resorts are doing well. Purchasing power in these resorts persists and is showing signs. Baby boomers who have become retired grandpa-boomers project themselves into different living spaces
“says Loïc Cantin.
Less than a million transactions
It was the decrease in sales volumes that foreshadowed this drop in prices. The year 2023 should drop below the one million transaction mark. Unheard of for 3 years! A landing at 950,000 transactions at the end of 2023 is expected, according to Fnaim estimates, i.e. a 15% drop (-150,000 transactions) in sales over one year. The second strongest decline in the last 50 years. All signals are red. Household borrowing capacity has fallen by 20% since January 2022, i.e. 40,000 euros less in purchasing capacity, according to Fnaim. ”
Housing is burning, the government is looking elsewhere
“says Loïc Cantin.
The real estate market is therefore in crisis. It is even experiencing the second most serious crisis since 1990, according to the National Real Estate Federation (Fnaim), which points out that at the time, interest rates were falling whereas today they are rising. ”
The market no longer has elasticity with the highest rates, the longest loan terms that we have known and the high prices too. The only resource is the fall in prices which is inevitable
concludes Loïc Cantin.
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