As we know, the real estate market has changed a lot over the past year. But to what extent? A study by the Foncia agency network provides some answers to this question. The real estate specialist analyzed 3,500 sales agreements from existing property transactions signed between April 1 and June 1, 2024. Foncia then compared these documents to those from the second quarter of 2023, in order to estimate the major trends in the real estate market over the last twelve months.The second quarter figures, while showing positive momentum, are part of a global real estate market context still in recession, especially with a clear shortage of properties on the rental market“, analyzes Jordan Frarier, president of Foncia Transaction.
In fact, the study reveals that the number of transactions of old goods has down 10% over a year in the first quarter of 2024, a depreciation that is still lower than in 2023 (-16%). This drop in demand is mainly explained by credit rates that have soared since the beginning of 2022, considerably reducing households’ real estate purchasing power. This scarcity of buyers has logically pulled prices down since, according to Foncia, those of old housing fell by 8% over one year in the second quarter of 2024. At the same time, sales times have logically soared (+8 days), reaching 92 days on average. The only bright spot in this gloomy picture is that the average surface area of properties sold over the last twelve months is slightly up (+2 square meters).
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An activity that resumes at the start of the school year?
But let real estate players rest assured: the start of the year seems rather encouraging. Foncia is indeed seeing a stabilization of its stocks of properties for sale in the second quarter of 2024.The situation of the second-hand market in the second quarter of 2024 suggests a market that is recovering little by little, after a gloomy period observed in recent months, continues Jordan Frarier. The month of April was marked by particularly positive dynamics and demonstrated that a property at the right price sells as well and quickly as last year, if not faster.».
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It remains to be seen whether this bright spot seen in recent weeks will continue in the second half of 2024. And unfortunately, Foncia is not very optimistic. First, because the figures for the second quarter, while they show a positive dynamicsare part of a global real estate market context that is still in recession, particularly with a clear shortage of properties to rent. The network’s agencies only list 8,000 properties for rent across the country, which is obviously very few.
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In addition, the crisis recorded in the new real estate market, the exit of energy-intensive properties from the rental market and a legislation deemed “unstable” are all factors that can slow down investment. “The current political context does not allow us to be as optimistic for the third quarter as we would have liked, given several positive signals observed over the last three months. But if the fall in prices and rates continues, activity could still become more dynamic from the start of the next school year.”concludes Jordan Frarier.
