The country house market, which had experienced a post-Covid boom, is in sharp decline in 2023. According to the latest report from the National Federation of Land Development and Rural Establishment Companies (FNSafer), transactions fell 24.2% from the previous year. In concrete figures, this represents around 91,000 transactions in 2023, compared to 120,000 in 2022.
The country house market in sharp decline
This marked decrease in transactions is accompanied by a price drop of more than 4%, after six years of continuous growth. Although the average price of a country house remains above 200,000 euros, this drop constitutes a notable turnaround in the market.
FNSafer experts explain this situation mainly by the rise in interest rates, multiplied by four between December 2021 and 2023, and by the conditions of access to credit, which have become stricter. This increase in credit costs has forced many potential buyers to abandon their real estate acquisition plans. “ The decline is much more marked than that observed in the classic old real estate market », Note the authors of the study.
The decline of the country house market is observed throughout the national territory. The most affected regions include Auvergne Rhône-Alpes with a 30.6% drop in transactions, Hauts-de-France (-31%) and Normandy (-21.1%). This situation results from the increasing difficulty for buyers to obtain financing, combined with a skyrocketing interest rate on real estate loans, reaching around 4% for 20-year loans.
Rural market prospects
Due to a lack of solvent buyers, many owners have been forced to reduce their prices in 2023. On average, house prices in the countryside fell by 4.3% in France. However, this average hides significant disparities depending on the departments. For example, prices fell dramatically in Marne (-24.4%), Côte-d’Or (-24%) and Doubs (-23.7%). Conversely, certain regions saw prices increase, notably in Haute-Savoie (+14.4%), in Seine-et-Marne (+14.1%), in Essonne (+22.2%) and in Yvelines (+42.5%).
The crisis in the country house market seems likely to continue as long as financing conditions remain unfavorable. The Safer network emphasizes that “ almost the entire national territory saw the number of transactions decrease between 2022 and 2023 “. This trend could continue to increase if interest rates remain high and that the conditions of access to credit do not become more flexible.
For owners, this is a period of reflection regarding the sale of their property. “ Maybe now is not the time to sell “, warn experts, due to the marked drop in prices and transaction volume. This situation requires an adaptation of sales strategies and a probable wait for an improvement in market conditions.
