Falling prices and towards 3.5% rates

The Figaro Immo Show, recorded on Thursday, April 11, 2024, aired on the Figaro TV channel.

How to Define Market Activity in April 2024?

Corinne Berek: “We are currently Between thrill and embellishment, We are coming off a very bad year in 2023 in both the transaction and rental markets. Our 2024 isn’t off to a great start so far Since March, indicators have been more positive, Our site is experiencing significant traffic, customers are returning to our agencies and requests for estimates are increasing 20 in a year %. Of course, it’s still a bit early to draw conclusions about offers and agreements, but mobility is there, Everything takes a little longer and that’s a good thing. It’s good that sellers take the time to sell and buyers take the time to meet and then set themselves up with the advice of professionals. The signs are quite positive.”

Ludovic Huzieux: “It is true that we are coming out of an extremely difficult year 2023, especially for real estate loans, withdrawals are in order 35 in a year %. Among the reasons: a large number of entry barriers to access to credit, restrictive standards of the HCSF (High Committee for Financial Stability), fees on income and of course the increase in rates… Since the beginning of the year, We are recording very encouraging improvements, The main reason for being thin is revealed by this All banking establishments have returned to the loan offer market, After the withdrawal phase last year, all banks, national, regional and mutual, are now lenders. Short, Conditions are improving as loan rates have started falling.,

price drop

Corinne Berek: “The the market is unequal According to geographical areas. Prices continue to fall, We needed this drop, prices had gone too high and rate levels had blocked activity for a few months. Slowly, we are seeing a readjustment in this market. What is difficult to measure is We do not yet have the impact of the recent recovery data., We are setting up an operation to support mobility, resulting in a 120-day guarantee.”

“For example, the decline in prices is more visible in Bordeaux and Paris, which had increased significantly in recent years. The market is still seized in terms of rentals. On the thermal strainer side, prices have fallen on average by orders of magnitude. Is it? 15 ,

The average rate scenario is 3.5% by the end of the year

Ludovic Huzieux; “Interest rates are moving downwards. A period of growth with violent intensification of more than a year (from 1 to 4%) seems to be behind us. The increase has been stopped. we are looking at a Stabilization since December and even some adjustments in drop, we’re under the bar 4 % (compared to average) for a good record over a period of 25 years. 4, 5 % just a few months ago).

Since all banks are lending again, there is a healthy phenomenon of competition for borrowers. Which leads to a conversation below. This is good news, especially as prices are falling. Borrowers regain purchasing power over real estate, The gradual decline should continue in the second half of the year. A scenario with an average rate around 3.5% is possible,

Housing policy: what measures to expect?

Corinne Berek: “Let’s give the new minister time to settle in, but I see that we have had no real housing policy for many years, even though it is the number one expense for the French. We need to continue this.” There is a need for a rental market for transactions in both public and private parks. 300,000 People are sleeping on the road, which is unacceptable. 1 million 200,000 People who are poorly housed, according to the latest report by the Abbé Pierre Foundation. This worries us very much. We need to rethink housing policy. Social housing, intermediate housing yes, but we also have to build new things. This is in the interest of everyone, especially tenants and youth, students, who face terrible difficulties in finding housing. We need an incentive tax policy to revive the sector and let’s stop stigmatizing landlords“Investors who strive to save for their retirement and make it possible to acquire housing in the market.”

Ludovic Huzieux: We must already adapt to the development and improve the wear rate. The thing that still hinders access to credit 35 The % of maximum loan on income charged is a standard set by HCSF. However, banks can only deviate from this 20 % of cases.

To restart the activity, For more flexibility we should deviate slightly from this 20% or one of two Keep the rest of your life in mind, if it’s comfortable. there is alsomaximum loan period Which is fixed at 25 years in the old and 27 years in the new and which one? Can be extended if necessary Especially First time buyers. This will also be necessary Extension of zero interest loan should be increased specially for individual home And don’t be limited to group housing in new buildings. Especially when a detached home remains the number one dream for 7 out of 10 French people.

full video of the show

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