Real estate crisis: Is housing an indicator of wealth?
square meter. How can this trend be explained?
After month-by-month observation, it is clear that prices continued to rise during the first four months of the year (between 0.4% and 2.6% depending on the month): the market slowdown really started in May. But the decline in prices is still modest: -0.6% in May and -0.2% in June.
While sales activity continues in the market with commercial real estate supply up 6.1% year-over-year, comparing the first half of 2023 to the end of 2022 shows a rapid recovery in the inventory of properties for sale: +24.3% compared to July-December 2022. This is to some extent due to seasonality, but not only, judging by the monthly development of offers for sale.
3
2
109
2
1
68
1
1
46.50
2
1
48
It's becoming rare for buyers to be able to get a mortgage. Are sellers starting to feel the decline in the number of buyers who can get a loan? This question arises with a slight slowdown in prices. Indeed, the increase in mortgage loan costs over the same period is rapid: average rates in early 2022 were around 1%, and at the end of June 2023 they were approaching 4%, meaning that mortgage loan costs have increased 3.5 times!
This dramatic increase, combined with a maximum loan rate including all costs (the overpayment rate) that is close to the average rate, eliminates the possibility of' 'especially in some cities,' complains Mael Bernier, communications director of Meilleurtaux.com.
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We will find property in France for you
- 🔸 Reliable new buildings and ready-made apartments
- 🔸 Without commissions and intermediaries
- 🔸 Online display and remote transaction
Our managers will help you choose a property
Liliya
International Real Estate Consultant
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