The real estate market in Mayenne has dropped by 20% in 2023 - France Bleu

In Mayenne, there has been a significant decline in sales of both new and secondary residential properties — compared to last year, volumes have dropped by 20%. The main reason for this is the sharp rise in interest rates. This was stated by Aksel Brier, a representative of the press service of the interdepartmental notary chamber of Mayenne, Sarthe, and Maine-et-Loire, during a broadcast on France Bleu Mayenne on March 25. According to him,“This is one of the key reasons for the decline in market activity, as people are facing increased borrowing costs, as well as inflation and rising construction prices, which also hinder transactions.”Banks are now carefully checking to ensure that the borrower's debt load does not exceed the acceptable limit. The established conditions are quite strict, and having a personal contribution has now become a necessity.

Nevertheless, it is worth noting that since the beginning of the year, interest rates have decreased from 4.5% to 3.5% for 20-year loans, which could mean savings of about 100 euros per month, which certainly makes a difference.

As of today, buyers have started to benefit more from the market situation. In the Laval area, the price of an old apartment has decreased from €122,000 in 2022 to €110,000 in 2023, while in the south of Mayenne, it has dropped from €88,700 to €70,000. At the same time, prices in the north of Mayenne have remained virtually unchanged.

As the market faces difficulties, sellers have been forced to take action by reducing prices by 5 to 10 percent.

Sellers had to adapt to the new market environment. Prices were quite high in the past, driven by low interest rates that contributed to price increases. Currently, the situation is leveling out, and in the context of a decreasing number of transactions, market players need to reassess their strategies. Thus, when the number of transactions is declining, it is essential to approach the sales process with greater flexibility.