Exciting changes in the real estate market in 2024 have led to decreasing housing prices and improved financing conditions, making homeownership more accessible. Interest rates have dropped significantly, enhancing buyers’ financial situations, while major cities like Strasbourg and Grenoble have faced notable price declines. In contrast, some medium-sized cities are experiencing price increases. Overall, these trends have resulted in a cautious recovery in sales, with transaction volumes rising across various regions.
Exciting Changes in the Real Estate Market for 2024
Real estate lovers can celebrate! The year 2024 has ushered in a fresh phase of decreasing housing prices, making the dream of homeownership more attainable in various cities. Following an extended period of rising prices that hampered transactions and dissuaded many potential buyers, the market is shifting. With interest rates dropping sharply and property prices sliding, it’s an ideal moment to embark on a real estate venture.
Price Declines and Improved Financing Conditions
After a tumultuous crisis in 2023, the once-struggling real estate market has made strides toward recovery in 2024. Conditions for accessing credit have improved significantly, with interest rates falling from 4.20% in 2023 to 3.37% in 2024, as reported by the Crédit Logement Observatory. This positive trend has bolstered buyers’ financial capabilities and lessened the price drops seen in recent months.
Nonetheless, a majority of major cities continue to witness price declines. Notable exceptions include Paris, which saw a modest increase of 2%, and Nice, which rose by 0.7%, according to the Bien’Ici barometer of BFM Business. Among the cities experiencing the most significant price reductions, Strasbourg takes the lead with a 5.2% drop in 2024, closely followed by Grenoble, Nantes, and Rennes, each recording a decrease of 4.8%.
Other prominent metropolitan areas have also experienced considerable price drops: Lyon fell by 3.5%, Montpellier by 3.8%, Marseille by 2.8%, and Toulouse by 2.9%. In cities like Saint-Étienne, Bordeaux, and Angers, the declines are more moderate, with reductions of 1.9%, 1.8%, and 0.6%, respectively. Lille, on the other hand, has seen prices stabilize with only a slight decrease of 0.1%.
In medium-sized cities, the price drops can be even more striking. Reims has recorded a remarkable decline of 6.4%, while Le Havre’s prices have fallen by 5%. Boulogne-sur-Mer and Colmar follow closely behind with decreases of 3.5%, while Aix-en-Provence, Nîmes, and Toulon report reductions of 3.4%, 3.3%, and 2.1%, respectively. Rouen’s decline is more modest, at 1.4%. However, some medium-sized cities are witnessing price increases in 2024, including Dijon (0.4%), Caen (1.6%), Gap (1.2%), and Mulhouse (2%). Particularly impressive increases are seen along the northern coast, with Dunkirk rising by 7.4% and Calais leading with a staggering increase of 12.6%.
The combination of falling prices and improved financing conditions has sparked a cautious recovery in sales. “While excessively high prices had previously hindered transactions, the landscape has transformed dramatically,” notes the Laforêt agency network in its annual report. The volume of transactions rose by an average of 7% in 2024, with Paris experiencing an impressive uptick of 11% and regions seeing a 5% rise. “Sellers have recognized the need to embrace negotiations to benefit from a significantly more favorable environment than just a few months prior,” adds Laforêt.