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For the first time in five years, real estate prices are falling. A decline of 0.2% since January 2023 on average, linked to the rise in mortgage interest rates.
In large cities as in rural areas, real estate prices are falling. One reason that prompted Dylan Vacher and his partner to buy a 163 square meter house in the village of Rufigné (Loire Atlantique). The property, comprising five bedrooms and two bathrooms with a plot of land with a total surface area of more than 600 square meters, was initially offered at 155,000 euros net to the seller. A price that the couple managed to lower by 10,000 euros.
Loan rates multiplied by three
If property prices had risen flown away during the pandemic, the euphoria East completed and the buyers negotiate further. The fall in prices is generalized everywhere, as in Paris (- 2.3% over one year)in Lille (- 2,4%) or in Lyons (- 3,2%). But households do not necessarily benefit from this phenomenon, because interest rates are rising. “Rates go around 1 to 3% which means that people can borrow much less”points out Alexandre Bertrand, director of a real estate agency in Nantes (Loire-Atlantique). According to observers, the trend should confirm and even increase in order to regain, in certain sectors, levels ofpre-Covid.
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