Warning for French homeowners: a monthly drop in property prices.

Monthly average property prices in France fell after several years of growth, the Federation of French Real Estate Agencies (FNAIM) said. They fell 0.3% in April compared to the previous month. Almost all sectors of the market were affected by the decline, with the exception of homes in tourist areas and the secondary housing market. FNAIM president Louis Canten warned that France is heading towards a market that will exclude the largest number of people from accessing real estate.

The combination of several factors - expensive raw materials, high inflation, environmental laws restricting owners of rental housing - has led to a decline in real estate sales and, in turn, reduced the value''real estate.

Inflation is the main factor preventing first-time buyers from entering the market - FNAIM predicts that rising inflation is preventing around 20% of potential buyers from buying property.

Data from notaries' offices on residential home sales released earlier this year show a further decline in sales of "old-style real estate" (mostly homes that are not new construction), but FNAIM's report covers the new construction market as well and shows problems in all aspects of the market.

About 950,000 properties are expected to be sold in 2023, up from 1,109,000 in 2022.

Although Paris is breaking stereotypes and seeing an increase in the number of properties sold, many other regions in France''are experiencing a decline in sales.

In general, the changes affect less tourist destinations and areas with a high percentage of secondary housing.

It is important to remember that these decreases only apply to monthly statistics and that annual trends (considering data from the last 12 months) still show a 4.5% increase in house prices in France, down from 6.3% at the beginning of February. Over the year, prices fell in Paris, Lyon, Nantes and Toulouse but rose in Nice, Marseille and Montpellier.

But FNAIM estimates that overall demand could fall by 10% in 2023, leading to a 5% drop in house prices. "At all levels the red signal is lighting up, it's come''time to legislate to revitalize the market again,' said Louis Canten.