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Sales of new homes are experiencing their worst fall in fifteen years. Materials that cost more and difficulties in borrowing are obstacles for buyers.
Across France, sales of new homes collapsed on Friday, October 21, and experienced their worst fall in fifteen years. In the Oise, a builder has launched one of the rare individual house projects. Every day orders are cancelled. “Today, the single-family home market is at minus 26%”explains Quentin Bourdon, general manager of the BDL group, who has noted a drop in buyers at the level of his company.
Construction prices have exploded in particular because of the more expensive materials. Thus, a house billed at 200,000 euros will cost 30,000 euros more. “All construction positions represent between 15% and 20% increase”, says Nicolas Le Forestier, works director. With the tightening of borrowing conditions, the purchase seems more and more complicated. A broker notices that fewer loans are granted, due to the rise in interest rates.