Real Estate Crisis: Is housing a sign of wealth?

Will housing become an outward sign of wealth? This question can be asked by comparing the rise in mortgage rates and older home prices in the first half of 2023.

Mortgages account for 3.5 times more in the French budget in a year, while house prices have still not fallen: they continue to rise by +4.8% over the same period. The analysis of the old housing market in the first half of 2023 is conducted by the Guy Hoquet supervisory board.

The decline in real estate prices began in May. Contrary to the alarming statements of several market participants, the reality of prices per square meter shows an increase of +4.8% in the first half of 2023 compared to the first half of 2022, and now averages €3,424 per square meter.

How''explain this trend?

If the market continues its momentum in terms of the number of offers for sale with a +6.1% year-on-year increase in properties on offer, the difference becomes apparent when comparing the first half of 2023 with the end of 2022: +24.3% compared to July-December 2022. This is partly due to seasonal effects, but not only, if we judge by the monthly change in the supply offered for sale. All regions are participating in the commercialization growth, but Ile-de-France still stands out with a significant