Real estate in France is doing badly. In January 2024, the amount of new housing loans declined further excluding renegotiations. In fact, it fell to 7.6 billion euros, the Banque de France indicated, according to its latest summary published on Tuesday, March 5. Thus the amount fell to the lowest level in ten years.
The amount of new housing loans, excluding renegotiations, continues to decline through early 2024. The latest figures published by the Banque de France on Tuesday March 5 show a drop of 7.6 billion euros. .
This suggests that in recent months, the revision of lending rates by some banks, with the aim of reviving the market controlled by these very high rates, until the recent past, still does not arouse the expected enthusiasm. In addition, the simplification introduced in the process now allows for the review of the first unfavorable decision. However, the new credit amount curve has not yet recovered.
Loan amount in January is lowest since 2014
It still stings with a decrease of 0.6 billion euros compared to the amount recorded in December 2023 (8.2 billion euros). “The amount from the peak in spring 2022 is divided by three, more than 22 billion euros.” Note that the record has never been equaled since 2014 BFM.
Additionally, the average interest rate excluding fees and insurance on new loans increased to 4.17% in January 2024 from 4.04% in December 2023. However, it should be noted that this data does not agree with the Credit Logement/CSA Observatory, underlining the BFM.
Discrepancy between Banque de France figures and OCL figures
The observatory suggests, on the contrary, “Real Estate Loan Demand Up 8.5% in January 2024”As compared to December 2023. He also mentioned “Average credit rate 4.15% in January, and also 3.99% in February, which was 4.22% in December 2023”.
However, it should be noted that “Central bank figures cover the entire market, unlike credit logamments, the result of restatements based on partial data. But the latter may be closer to the ground as they are calculated at the financing stage before the bank finalizes the loan file.Refers to the media.
What steps does HCSF take to correct the decline curve in real estate loans?
To see more clearly, we have to wait for the data to be updated for the new year, “Knowing that January data (loan offers signed in January) relate to credits negotiated at the end of 2023, a slight recovery at the beginning of the year, which some leading indicators will detect, is not yet discernible”, mentions the Bank of France in its press release. In addition, the credit market may develop differently.
As a reminder, the High Financial Stability Council (HCSF), which sets rules governing real estate credit every quarter, meets on Friday.
