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.

Sale flat in Saint-Denis 373 625 $

France,Saint-Denis

3 Bedrooms

2 Bathrooms

109 м²

Sale flat in Saint-Aubin-les-Elbeuf with city view 85 847 $

France,Saint-Aubin-les-Elbeuf

2 Bedrooms

1 Bathroom

68 м²

Sale flat in Corbey-Eson with city view 156 577 $

France,Corbey-Eson

1 Bedroom

1 Bathroom

46.50 м²

Sale flat in Saint-Denis 210 569 $

France,Saint-Denis

2 Bedrooms

1 Bathroom

48 м²

Sale flat in Rowan 190 268 $

France,Rowan

2 Bedrooms

1 Bathroom

61 м²

Sale flat in Nice with sea view 561 518 $

France,Nice

2 Bedrooms

71 м²

All regions are participating in the increase''trade, but Ile-de-France stands out in particular with its volume up 32.5% compared to the end of 2022.

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.