2023-07-12 05:00:00
– The real estate market is slowing down
Selling prices and the number of transactions in old properties in Haute-Savoie and Ain have been falling for several months. Figures and analysis of the FNAIM Savoie Mont Blanc.
Published today at 07:00
In Haute-Savoie (here, the Annecy region), in the second quarter, average prices in the old fell by 0.4%.
LUCIEN LUCKY
Is the real estate market fever in neighboring France falling? In any case, this is what the latest statistics from the FNAIM Savoie Mont Blanc (both a network of real estate agencies and a union of stone professionals) suggest that the “Tribune de Genève” has obtained.
In the old (the equivalent of the “existing” in Switzerland), over six months, i.e. between January 1 and July 1, the average price per square meter for the sale of housing (apartments and houses combined) fell by 1.3% in Ain. In Haute-Savoie, the progression slowed down, since it was only 0.6%.
The phenomenon is more marked during the last three months, between April 1 and July 1. The drop this time affected the two border departments. It almost doubled in Ain to 2.2% and was 0.4% in Haute-Savoie.
All types of property considered (apartments and houses), the average price per square meter on July 1 reached 2,542 euros in Ain and 4,679 euros in Haute-Savoie
In detail, the average price per square meter of an apartment is on the same date 2498 euros in Ain and 4534 euros in Haute-Savoie.
To acquire a villa, it is now necessary to pay 2567 €/m² in Ain and 4881 €/m² in Haute-Savoie.
Unsurprisingly, the prices of apartments and houses for sale remain, in general, more expensive in localities located near the Swiss border than elsewhere in the two departments. As often too, they are higher in large population centers than in small municipalities far from urban centers.
Downtrend initiated
President of the FNAIM Savoie Mont Blanc, Sébastien Cartier relativizes: “A downward trend seems to be beginning, even if the decline in prices is quite contained for the moment, especially in comparison with other regions in France. The next six months will confirm or invalidate this situation. But, in any case, I do not expect a collapse in prices.
The man who is also president of the Bouvet Cartier real estate agencies in Annemasse, Ambilly and Boëge, in the Haute-Savoie region of Geneva, is cautious before drawing any hasty conclusions: “In Haute-Savoie as in Ain, the market remains tense, with demand outstripping supply.
The “Swiss effect”, still
This situation is partly due to the strong presence of potential buyers from the border and Switzerland in these two departments: “This clientele has an already high purchasing power which is reinforced by the current strength of the franc against the euro. This allows it to better support financially the increase in acquisition costs due to the rise in interest rates,” he notes.
In addition, continues the stone specialist, the interest of investors who plan to buy one or more properties to then rent them is not weakening: “On the one hand, current inflation is pushing them to keep less cash in bank and invest some of it elsewhere, such as in real estate. On the other hand, the tension on the rental market in the region is the guarantee of a low risk of vacancy and good profitability.
In summary, the strong purchasing power of border and Swiss customers and the sustained interest of investors in stone are helping to maintain demand on the rise, which is containing the fall in prices in neighboring France.
The problem of energy-intensive goods
Moreover, notes Sébastien Cartier, “over one year (note: either 1is July 2022 to 1is July 2023), prices remain on the rise”, by 3.4% in Ain and 5.2% in Haute-Savoie. Over five years, the increase has even reached nearly 25% and nearly 30% respectively.
On the other hand, owners selling energy-intensive and poorly rated properties must correct their prices, he warns: “Sellers must take this into account in their requirements, with interested buyers having to include renovation costs in their purchase budget.” In other words, the former must lower their price claims against the latter, at the risk of struggling to find takers. “Some sellers still have trouble accepting it,” he notes.
Lower sales volumes
The decline is also felt in the volume of sales. On July 1, the number of transactions was 10,475 in Ain and 17,754 in Haute-Savoie, i.e. a drop, respectively, of nearly 8% and 4% over one year compared to July 1 2022.
The fault “clearly to the increase in interest rates”, which increases acquisition costs, comments Sébastien Cartier. “This caused households to lose 20% of real estate purchasing power. The files of some of them, in particular first-time buyers, often young and with a tight budget, no longer pass the ramp and are refused by the banks, which consider that the effort rate (Editor’s note: the ratio between the sum of housing-related expenses and household income) is too high for them.
This situation eliminates some of the potential buyers on the market, which translates into a drop in sales. But, here too, Sébastien Cartier puts it into perspective: “The transaction volumes recorded in 2022 and 2021 were exceptionally high. Those of 2023 could ultimately correspond to a return to normal, ”he concludes.
Fabrice Breithaupt is a journalist and sub-editor. He deals with real estate, employment and training. After experiences in institutional communication (UN in Geneva and French Ministry of Defense in Paris), he became a PR journalist in 1995 (radio, then print media).More info
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