It’s a cold shower for sellers! According to real estate networks, prices need to fall by at least 10% for the market to get back on good footing. Some even put the figure at 25%. A drop which amounts to tens of thousands of euros at the time of sale and which, according to experts, is equal to a drop in the purchasing power of buyers. “Sellers, especially if they are selling to buy a home, have to tell themselves that they may lose on the sale but gain on the purchase.», sums up the real estate broker.
At the moment, this decline in property prices, which is starting to spread across France, is still moderate according to the main networks in France: between -1% and -2% between the first half of 2022 and 2023, according to Orpi and Century 21.Real estate is not experiencing a cyclical crisis, but a structural one. In addition to the housing shortage, prices need to come down for supply and demand to meet again and the market to regain good momentum. insists Guillaume Martinaud, president of Orpi. A barely veiled message to sellers who refuse to push for price. The consequence: the deadlines keep getting longer and slowly but surely approaching 3 months, both for apartments and houses.
The sharp increase in prices coupled with the rise in lending rates also caused a drop in sales in the first half of the year. While some hope the second one will be less catastrophic, the advanced indicators of the first French network are worrying. Sales contracts, which typically precede sales by 3 months, fell by 21% in France between January and May 2023. In Paris and Lille it is even 32%. Only Rennes is doing better than resisting, with an increase of 13%. Reason? Property prices fell by 17% in the Brittany city, where they fell by just 2% nationally.
Despite this gloomy context, the French continue to believe in real estate. Almost 70% of them say they are ready to invest in stone, according to an Ifop survey for Laforêt. The top three reasons are: building assets (42%), ensuring financial security (36%) and achieving good profitability (30%). “The French have a long-term vision, with the investment par excellence to secure their wealth strategy being real estate.», concludes Yann Jéhanno, President of Laforêt.