The rise in real estate prices in France put a brake on transactions in the third quarter, the Century 21 agency network said on Monday in a press release, leading it to reconsider its projections. “Never have real estate prices been so high in France,” said the network, pleading for the construction of new homes in order to limit the pressure on prices.
In the third quarter, the price per square meter increased by an average of 11% for houses and 7.3% for apartments over one year, according to figures from Century 21. According to the agency network, the The increase in prices is the result of an increase in demand, while the confinement has changed the relationship of the French to their housing and pushed some to move for larger, without the supply following.
No panic on board
“Prices have risen too quickly, decorrelated from inflation or the average increase in wages. And even if the historically low interest rates favor acquisitions, they cannot neutralize this increase, ”the press release explains. The effect of the increase was felt on the volume of transactions: -19% on house sales and -11% on apartments compared to the third quarter of 2020, while the president of the network, Laurent Vimont, said in September predict a rebound after confinements.
However, “do not panic on board,” he said this Monday morning on BFM Business. “It is normal for prices to rise and then stabilize and fall when demand no longer follows, so that transactions start again,” he argued. “It would be rather healthy if [les vendeurs] correct their prices a little bit, ”he added, so the increases exclude the most modest households from the market.