After supply and demand declined, new home prices are now starting to fall. New home prices are starting to decline, which is quite rare. This is not true for every type of property and not in every city, but it may be just the beginning.

The experts at trouver-un-logement-neuf.com studied the 10 largest cities in France and the prices of 3-bedroom apartments, which are the benchmark. Prices are falling in half of the cities studied. The strongest drops are -3% in Lyon since February and -8% in Nice. There are also price declines of 6% in Nantes and 2% in Montpellier. Lille declines barely noticeable, but still overtakes Toulouse in the ranking of the largest city where 3-bedroom apartments in new buildings are the least expensive. The cost is 305,000 euros.

But it''Price cuts are not yet enough. For buyers, this is good news that still needs to be relatively priced. Unfortunately, this decline in new home prices is not enough to offset mortgage losses due to rising interest rates. Thus, buying power continues to decline across the board, but somewhat less in those cities where prices are declining the most.

In Nice, Nantes, Lyon and Montpellier, for example, monthly payments on the purchase of a 3-bedroom new-build property "only" increase by 5-10%.

It should be noted that price falls need to be assessed''is relative for buyers and it is dangerous for developers. We know that there are unavoidable costs in new buildings, such as material or land costs. To maintain their margins, real estate developers should not cut prices. But the situation has changed. Many of them are facing sales at a loss and are weakening. That's why developers now need to have at least 50% of their planned homes reserved when they open sales, instead of the usual 30%. To attract as many buyers as possible, real estate developers no longer have a choice, they are slashing prices. And pay attention, in addition to discounts at the launch of projects, there are also unclaimed objects that lose in price, reaching 10% or more.

The high article.