Real estate crisis: It's too early to talk about recovery, according to the Moselle Chamber of Notaries - France Bleu

In 2023, there wassignificant turnIn the real estate sector, as stated by Andrei Lombard, president of the Moselle Notary Chamber. He emphasized that this year has been unique.over the last ten yearsThe pawnshop also believes that the current decline in prices is not so straightforward. "We haven't faced such a difficult situation in a good ten years," he admits. In an interview with France Bleu Lorraine on January 15, he noted: "Certainly, 2023 will be remembered as a landmark moment in the real estate crisis. There were a third fewer properties sold. From 1.2 million transactions at the end of 2022, we dropped to 900,000 by the end of 2023. Major cities like Paris, Lyon, and Bordeaux have been hit the hardest, but this issue affects the entire country."

Expectations for 2024

But what awaits us in 2024? Although prices have started to gradually decrease, according to a notary from Moselle,it's still insignificant for now“Owners are starting to realize that their properties have been on the market for a year and a half and still haven’t sold,” he explains.

Interest rates

It is also worth noting that interest rates have finally started to decrease. "It's still too early to talk about a recovery in real estate," says Lombard. "We need to wait for the second half of the year to see clearer trends." Interest rates are still at a high level. "They have started to decline, but they are still around5%It is expected that this decline will continue, and the second half of the year may bring lower rates.4%"...which may once again encourage people to pursue their projects."

Changes in rental agreements and market challenges

Nevertheless, the real estate market may remain under pressure due to the upcoming changes: starting fromJanuary 1, 2025the rental of housing classified asG"This measure will lead to an even greater housing shortage," Lombard expresses his concern. "Property owners will be faced with a choice: either carry out the necessary work to rent out such properties or sell them, but at lower prices. However, the deadlines for tightening are too short for us, and the existing assistance is insufficient."

Thus, the real estate market is facing numerous challenges, and the future remains uncertain. The results of 2023 may influence future dynamics, but for now, the situation remains concerning and requires careful analysis.