Crisis in the real estate market: reduced sales and falling prices ...

The real estate market continues to feel the effects of the recession amid inflation and rising interest rates. Home prices are coming down. This is evidenced by FNAIM's monthly real estate barometer for October. In Paris, prices fell 5.2% in a year.

Housing has begun to face a market turnover that could continue. The year 2023 should end with a historic record of a 21% year-over-year sales decline (to 885,000 sales) and price declines accompanied by sustained inflation. Overall, the housing market went from one shortage to another: the transaction market lockout caused the shortage of housing for sale to dissipate, but the problem shifted to a shortage of rental housing. That said, the supply of housing is inadequate, especially in some stressed areas. "The crisis is serious and we are only beginning to realize it," stresses Loic Kanten, president of FNAIM. This should alert the authorities, who do not seem to realize the full measure of the crisis that threatens the real estate market and prevents access to housing for many French people. At a time when the situation calls for proactive policies to support property acquisition, promote construction and help private landlords with long-term leases, the urgency for action is becoming more pressing.

The cycle of declining real estate prices has begun.