2024 or the year of the big thaw?

Until the end of 2023, accessing real estate credit represented a major challenge for many borrowers, particularly those with low deposits or whose income was not sufficient to meet the strict effort rate requirements imposed by the Bank of France. This context had slowed down access to property for young households and first-time buyers, increasing pressure on the market.

However, the year 2024 marked a turning point. The level of required personal contribution, which had reached peaks at the start of the year, has started to ease according to figures from the Observatoire Crédit Logement / CSA. This development, combined with the banks' desire to revive a sluggish sector, has enabled younger households with modest incomes to return to the real estate market. This reopening was facilitated by initiatives from developers and builders who adapted their offers.

Borrowing rates noted on 11/12/2024

Encouraging figures, but a partial recovery

Despite this improvement, the recovery remains partial. The cost of new construction operations further decreased by 2.9% over the first ten months of 2024, showing a slowdown from the 3.7% decline seen in 2023. Furthermore, household income is increasing at a slower pace than in 2023 (+0.7% in 2024 compared to +6.1% the previous year). Consequence: the cost of transactions recovers slightly, reaching 5 years of income in October 2024, compared to 4.8 the previous year at the same period.

The evolving old market

The new home market is showing signs of recovery: credit production jumped 18.3% over the rolling year to the end of October 2024, and the number of loans increased by 57.5% compared to the previous year. However, these positive figures do not completely offset the effects of the recession that began in 2021. The solvency indicator (borrowing or repayment capacity) remains at historically low levels, even if the easing of credit conditions allowed a reduction in the average contribution of 6.8% over the year.

In the existing market, the recovery is also visible. The number of loans granted increased by 27% in October 2024 compared to 2023although overall activity over one year remains down 11.8%. This dynamic indicates that, despite a clear improvement, low-income households continue to face obstacles in financing their projects, largely due to constraints still in place on access to credit.