High prices, the bane of real estate agents
At the beginning of June, the market and its real estate project leaders welcomed the European Central Bank’s cut in key interest rates with enthusiasm. However, this change in trend was not enough to revive the market dynamics.
In fact, for 40% of independent real estate agents, prices represent the main obstacle to recovery.
Prices adjusted several times to close a sale
Over the past six months, more than half of independent real estate agents declare that they have repeatedly readjusted the selling price in order to conclude a sale. In 15% of cases, the revaluation at the price drop has intervened more than 3 times in less than 6 months. In addition, 42% of independent real estate agents report that sellers persist in wanting to display sale prices that are disconnected from the market. These figures are strong indicators showing once again the need for set a realistic selling price.
« We are entering a new real estate cycle in which buyers who are waiting and sellers who are still very proactive when setting the sale price must adjust.” explains Olivier Bugette, CEO of La Boîte Immo.
Also read: According to notaries, the drop in property prices is becoming widespread
Professionals impacted in a homogeneous manner
After a shortage of buyers, more than Half of professionals have difficulty obtaining new mandatesThe reason most often given by sellers: they prefer to postpone their real estate projects.
The decline in the number of signed agreements continues, even if the pace seems to be slowing down: -5% vs Q1 at the national level, compared to -13% between Q1 2024 and Q4 2023. A finding corroborated by 60% of the independent real estate agents surveyed who report a marked decrease in their activity compared to the previous year. However, it should be noted that for a significant portion of agencies, the situation is not so catastrophic; 40% of them say they will maintain or even increase their activity this year.
Also read: 6 tips to convince sellers to lower their prices
Irreconcilable buyers and sellers
A new phenomenon: the scarcity of sellers
For the first time, independent real estate agents (52%) have noted a decline in the number of active sellers in this second quarter. The reason most often given by sellers: they prefer to postpone their real estate project rather than sell at prices they consider unsatisfactory.
The stock volume corroborates this trend. Stocks continue to increase but in much smaller proportions compared to Q1: +6% in Q2 vs +37% in Q1.
Salespeople who always turn a deaf ear
Negotiation margins are stabilizing at a national average of around -5.6%. However, cities such as Bordeaux (-6.8%) and Nantes (-7.9%) are seeing their negotiation margins increase. In the absence of a real drop in sales prices, the market correlation is starting to take place between supply and demand.
Real estate agents are thus continuing their educational work to convince sellers to realign their expectations.
Cautious buyers looking for opportunities
On the potential buyers side, 47% of real estate agents say that the majority of buyers are looking for a good deal, looking to take advantage of the situation for a real estate project. Only a small minority (6%) of buyers are in a hurry to buy in the short term.
Concretely, across the territory, on average nearly 21% of sales agreements do not result in a final signature, i.e. 1 in 5 sales, a relatively stable figure compared to Q1 2024 (+0.3 points).
« Both parties, buyers and sellers, find themselves facing conflicting interests. Buyers have taken the upper hand in the market and are on the lookout for good opportunities. Sellers must accept that the market reality has changed!” concluded Olivier Bugette.
To read: Real estate: what are the purchasing desires of the French?
