In France, real estate loans are once again accessible with more reasonable and falling rates, allowing buyers to take advantage of the downturn in prices.
The conclusions of the Paris notaries are clear: Real estate transactions in Île-de-France recorded a 25% decline in one year to 2023., a decline that spared no segment of the market. Not less than 47,000 sales were recorded during the year.
Homes are also falling in love, leading to a drop in prices, which is expected to continue into 2024, according to experts. With 39,360 sales of older homes in 2023, activity fell to its lowest level in 10 years. It’s even worse in the inner suburbs, to the point that we have trouble supplying our database », write a notary of France. Home sales fell 28% year over year, more than the decline in apartments.
On the real estate loan front, 2024 promises to be a year of relief. After two years of tightening, borrowing conditions are easing, with interest rates near record highs. Rates are falling. “ So we believe that for the coming weeks per 20 years will generally remain stable between 3.7% and 4.20% depending on the banks and profile. », explains Julie Bechet, general manager of broker Vousfinancier.
It is now possible to borrow at less than 4% if the file is good and the negotiation works. This development is accompanied by a decline in loan denials: the denial rate, which reached an average of 34% in 2023, fell to 18% in early 2024. We are very pleased to see a sharp decline in rejected applications from the start of 2023, reflecting banks’ willingness to refinance but generally more favorable conditions but also rate cuts at some banks that have increased wear rates.
»The good news is that the contribution required to get a real estate loan has been reduced. In early 2024, the Broker Finance Council Announced a reduction in the average contribution of more than 10,000 euros, from 64,942 euros to 54,798 euros. A reduction of 18.5% reached 45% in some cities, notably Bordeaux.
The Guy Hoquet Observatory, in its February 2024 edition, shows a more favorable start to the year for buyers, with signs of price stability… but disparities between regions. generally, ” Homes, which still represent around 60% of the supply of older properties placed on the market, continue to attract buyers and Thus see their prices show a more significant increase at +2.6% in 1 year While, at the same time, the apartment segment showed -1.5% », explains the network of agencies.
However, this steady trend masks strong regional disparities. If certain regions such as Provence-Alpes-Côte d’Azur and Brittany maintain their attractiveness with rising prices, Ile-de-France and other regions are experiencing a decline in value per square meter. “ Three-quarters of cities with more than 200,000 inhabitants were affected by the decrease in average prices/m² in January-February 2024 versus January-February 2023. ” With the notable exception of Marseille and Nice, which recorded increases of 1.2% and 9.2% respectively.
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