On the way to a new equilibrium...
The Observatoire de l'Habitat has just released its latest report, unsurprisingly, it announces that selling prices are on the decline.
The transaction volume is also significantly reduced.
In recent years, the rise in real estate prices has far exceeded the rise in wages. No matter the price, given the low amount of available properties, there was always someone to buy.
At the same time, borrowing rates returned to a more "normal" level. Consequently, the borrowing capacity of the population has been reduced by 20 to 30%.
These two combined phenomena have made home ownership out of reach for at least 50% of the population.
The state has made an effort by increasing the tax credit from 20 to 30k€ per head. Is there still room for maneuver on the public side? It is not certain.
In their day to day activity, real estate agents observe a real drop of 10 to 20% in selling prices. It's probably not over.
Some want to wait, others can't. One thing is certain, information circulates. When a property has sold for a given price in an area, there is little chance that an equivalent property will sell for a much higher price.
The price drop is unavoidable, it's the only way to make the real estate market accessible/attractive again.