The slowdown in the real estate market is confirmed. The number of transactions is in sharp decline due to difficulties in accessing credit and generally falling purchase prices, note the agency networks in their 3rd quarter barometers.
For Century 21, which already detected a drop in prices in the 2nd quarter, this was further accentuated over the period from July to September, with a 4.1% drop over one year for apartments and 2% for apartments. houses. Same thing for Laforêt, which recorded a 3.1% drop in prices per square meter, and for Orpi, for which prices since the start of the year have fallen by 2%. Only the National Real Estate Federation (Fnaim) still detected an increase in prices, of 1.1%, in its last barometer dating back to September 1.
Soaring credits
The reason is the soaring cost of credit which excludes many first-time buyers, buyers having to go into debt to buy their main residence. The market is driven by “second-time buyers”, who buy by selling their previous property and therefore have a considerable contribution. For Laforêt, they now represent more than one in two buyers, compared to less than 20% for first-time buyers.
Consequence: all networks report a drop in transactions. Their number has thus fallen by 22% according to Orpi, by 15% according to Laforêt and by 23 to 27% according to Century 21. As for several quarters, it is the large cities which are driving prices down, and in particular Paris. “The fall in prices, even if it is relatively weak and heterogeneous today, is gradually starting to spread throughout France and regions or cities which were on an upward trend, such as Brittany,” Yann commented for AFP Jéhanno, president of Laforêt.
Bordeaux, Rennes and Lyon are following the same downward trend, note professionals. Exceptions which confirm the rule, several cities, notably on the shores of the Mediterranean, have according to most networks continued to see their prices rise, first and foremost Marseille and Nice.