Why real estate prices will strengthen in the coming months

The impact of rising interest rates should intensify the decline in real estate prices in the coming months. This will favor purchasing power and inequality, after two decades in which households went into debt for the benefit of property owners and their heirs.

"Waiting now is urgent," the French who have properties for sale seem to be thinking. The pace of home sales has slowed dramatically in recent months.

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"We expect a 15% drop in transactions in 2023, the second strongest contraction since 1976," says Loïc Cantin, president of the National Real Estate Federation (Fnaim).

This slowdown is due to the rapid rise in European interest rates''president of the Institute of Real Estate Management.

The only way to regain breathing space is to reduce prices." So far, the average price of older apartments (excluding new-builds) has fallen by just 1.4% between July 2022 and July 2023, according to the latest data from the Notaires de France. However, some major cities have seen larger price drops, such as -5% in Paris or -3% in Lyon.