Real estate: falling prices everywhere in France

In France, real estate prices are falling “for the first time in five years”explains journalist Anne-Claire Le Sannpresent on the set of 19/20, Thursday March 2. Overall, there has been a decline of 0.2% since January. It was first observed in Paris, with a drop of 0.8%, then the drop in prices spread to other major cities.

The increase in real estate loans in question

Anne-Claire The Sann indicates that the person responsible for this drop is “the increase in mortgages”. “Indeed, the average interest rate is 3% over 20 years. Last year, the best profiles could negotiate borrowing rates at 1%. Concretely, in 2022, by repaying a monthly payment of 1,000 euros for a 1% loan over 20 years, a household could borrow 217,000 euros. Today, it’s only a loan of 180,000 euros, i.e. a loss of 18% of borrowing capacity”continues the journalist. Consequently, “many first-time buyers or some households, for lack of family contribution or high salaries, abandon their real estate project“, explains Anne-Claire Le Sann.