The crisis in the real estate market: a historic drop in prices in the secondary market.

In 2023, prices for old real estate have decreased by 4%, marking the first decline since 2009, which illustrates the crisis currently facing the real estate sector. A drop in property prices is being observed in France in 2023, something that hasn't happened since 2009. The real estate market is currently in a complete standstill: from rentals to purchases, in both old and new housing, including social housing. The most obvious symptom of this crisis is the price drop: -4% from the end of 2023 compared to the end of 2022 in old housing, which hasn't occurred since the subprime crisis in 2009, according to notary statistics.

The price drop was much more significant in Paris and its surroundings (almost 7%) than in the rest of the country. The volume of transactions decreased by 20%. However, the situation is even worse in new housing.

Has the real estate market hit rock bottom? Financially, yes, says the observatory center of Guy Hocquard. Interest rates have started to decline, banks are less strict with down payment requirements, and this trend should continue. However, this will not be enough to revive the market. The decline in prices for older homes is expected to continue this year (by -6 to -8% according to Fnaim), legislative uncertainties (energy efficiency) are causing apprehension, and new housing will take time to recover, with a likely loss of 200,000 to 300,000 jobs in the construction industry.