Most real estate agency networks report this observation in the third quarter barometers. A surge in the cost of credit is the main reason for such a development.
The existing real estate market slowed down sharply this summer, with a sharp decline in the number of transactions and falling prices, according to the agency networks in their third quarter barometers. Only the National Real Estate Federation still detects an increase in prices, of 1.1%, in its last barometer dating back to September 1.
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For Century 21, which already mentioned a drop in prices in the second quarter, this was further accentuated between July and September, with a 4.1% drop over one year for apartments and 2% for houses. Same thing for Laforêt, which recorded a 3.1% drop in prices per square meter, and for Orpi, for which prices since the start of the year have fallen by 2%.
A decline which is beginning to spread throughout France
The cause of this phenomenon is the soaring cost of credit, which excludes many first-time buyers. The market is driven by “Second buyers”, who buy by selling their previous property and therefore have a significant contribution. For Laforêt, they now represent more than one in two buyers, compared to less than 20% for first-time buyers.
This is why all networks are reporting a drop in transactions. Their number thus fell by 22% according to Orpi, by 15% according to Laforêt and by 23 to 27% according to Century 21.
As for several quarters, it is the large cities which are pulling prices down, and in particular Paris. “The decline (…), even if it is relatively weak and heterogeneous today, is gradually starting to spread throughout France and regions or cities which were on an upward trend, such as Brittany”commented for AFP Yann Jéhanno, president of Laforêt.
Bordeaux, Rennes and Lyon are following the same downward trend, note professionals. Exceptions which confirm the rule, several cities, particularly on the Mediterranean coast, continued to see their prices rise, first and foremost Marseille and Nice.