While we live in a pivotal period in history with a real ecological problem in the world of housing, New construction is completely losing ground.
In just a few months, the price of new homes finally exploded Attract potential buyers who are now shifting to more energy-intensive housing.
Catastrophic results
The French Building Federation’s housing unit builders have just published their results for the year, and the verdict is clear. 39 is the percentage of short sales that were made on individual house sales.
This represents 58,000 transactions in 2023 and 98,000 sales in 2022. But then, how can we explain such a decline in sales when the French never had the ambition to own a detached house?
The noose is tightening
If you are currently looking for a home to buy, you probably know that the period is not ideal. With the current inflationary conditions, despite the substantial deposits, the conditions for obtaining real estate loans are still tough.
of course, A sudden rise in interest rates, from 1% in 2021 to an average of 4.5% currently Clearly illustrates how difficult it is for the French to own their homes.
Despite this rise in rates, the existing real estate market has not declined as significantly as the new property market. So, how do we explain such a decline in new construction sales?
30 to 40% for nails
In addition to interest rates, one of the possible reasons for this decline in sales is in the new home market. Massive increase in material costs.
Indeed, the perverse effect of the war in Ukraine was a massive increase in the cost of construction materials. According to the General Representative of the Housing Center Christophe Beaucox, “Materials prices to increase by 30 to 40% between 2019 and 2023”.
Construction site costs automatically increase with the increase in material costs, which of course is reflected in the selling price. The fact that it’s hard to build land in attractive areas doesn’t help either. therefore, Buying a new single-family home is likely to become more complicated in the coming years.
- The French Building Federation’s housing poll of builders has just published their results for the year
- They report thereSingle-family home sales drop 39%98,000 sales in 2022 to 58,000 sales in 2023.
- This can be explained by the fall A drastic increase in interest rates on real estate loansas well 30 to 40% increase in construction materials.
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