Real estate prices in the old stock are declining.

For the first time since 2015, the value of older properties fell 1.8% year-over-year, according to the Notaires-Insee index released Thursday, Nov. 30. After a prolonged rise in prices since late 2015, the situation has changed dramatically since mid-2022, when annual growth exceeded 6%. After rising 6.8% in the second quarter of 2022, growth in older real estate prices declined to 6.4%, 4.6% and 2.7% before falling to 0.5% in the second quarter, mainly due to rising interest rates, which increased borrowing costs. Prices fell 1.8% year-over-year in the third quarter.

The number of transactions, an indicator of market activity that reached an all-time record in 2021, continues to decline rapidly.

The value of older housing in Ile-de-France fell sharply in the third quarter (-5.3%), down from -3.1% in the second quarter. House prices in Ile-de-France fell by 5.4%, while apartment prices fell by 5.3%. Small Ile-de-France (-6%) and large suburbs (-4.0%) also saw year-over-year declines in apartment prices.

For the first time since 2015, prices of older homes are down for the year in the province, at -0.5% in the third quarter, after rising 1.8%. They decline due to lower house prices (-1% after +1.3%), while apartment prices continue to rise slightly (+0.5% after +2.8%).