Should you sell your home at a discount or wait? The dilemma of real estate owners

Housing. A basic need that is struggling to be met in France in 2023. And the situation is not going to improve. The sector has been facing increasing constraints for several years: environmental standards, high land costs, rent regulation... Rising interest rates have changed things for buyers, sellers and renters. Our explanations and ways out of the impasse in this special six-part dossier.

Would you be happy or sad to sign a contract?

There was a time, not so long ago, when sellers didn't face such dilemmas: in a real estate market where demand outstripped supply, they ran the game. Those lavish times are long gone. Shoppers are no longer crowding in. And the most serious of them, armed with a hard-to-achieve loan agreement, are no longer willing to make a deal without firm bargaining.

The problem is that "the price reduction is still too moderate," says Edward Grimond, a spokesman for the High Council of Notaries. By the end of the year, professionals expect only an average decline of 1%. "It's not enough to compensate for the loss of purchasing power of the French and the increase in interest rates," says Stéphane Fritz, president of Guy Hoquet, which has 550 agencies across the country.

Decisive sellers

The owners' awareness has not yet arrived. Many people insist on maintaining the value of their apartment or house at all costs. A human reflex, all too human. "Everyone's thinking has the idea that you can't make a bad deal in real estate. Real estate agents are sure to provide comparables. This is one of the advantages of this profession", emphasizes Philippe de Ligniville, Executive Director of Bien'ici.

The profile of sellers has changed significantly. "First are those who have to agree to the price offered by buyers," elaborates Charles Marinakis, president of Century 21 France. Divorcing couples or those whose professional situation changes due to a mutation or job change. For others, it's children who leave the family dwelling and the house becomes too big. "On the other hand, there are optimists who still hope to find the 'right customer'. These people are now out of the race. And in between is the majority: indecisive sellers," continues Charles Marinakis.

The market adjustment

For months, real estate has been engaged in a pedagogical moment to unlock the situation, by its standards. "Obviously, sellers need to revise their claims, update them to match the market. The owners have made significant profits in recent years. It's time for them to accept the fact that real estate values are no longer the same," says Yann Jeannot, president of the Laforêt agency network.

The uncertainty of the future

Spring, summer, or maybe even fall of 2024? It's hard to say when significant declines will occur. "The market is gridlocked because everyone is waiting. This is a year of transition after fifteen years of euphoria," says Ingrid Nappi, an economist and real estate expert. "This adjustment is healthy, but it is extremely painful because of its speed. It will continue next year as prices will remain too high and a revision of rates is not on the agenda," complements Thomas Lefebvre, scientific director of Meilleurs Agents. The online valuation expert predicts a total of 890,000 sales this year, down 20 percent from 2022. A fall, the end of which no one dares to predict yet.