In the second quarter, prices per square meter fell by 8% over a year according to Foncia. Orpi detects a drop of 7% for the entire first half, and Laforêt of 4.1%. “This year, it started well in the first quarter and accelerated in the second,” says Jordan Frarier, president of Foncia Transaction.
The fault of the credit rates
The cause is the drop in credit rates, and “sellers who are a little more attentive and who lower their prices”. “All real estate professionals have said the same thing, saying that something had to be done because people could no longer keep up”, also states the president of Orpi, Guillaume Martinaud.
According to Laforêt, house prices are falling more than apartment prices, -6.8% compared to -1.7%. “We can clearly see that the French, even if they still dream of a detached house, which is their ideal, they know that a house is a more significant financial investment” in terms of heating, exterior or fuel, explains Laforêt’s president, Yann Jéhanno.
This drop in prices is beginning to stem the fall in transactions, note the three networks.
Dissolution effect
The dissolution of the National Assembly decided on June 9 by Emmanuel Macron, which could bring the far right to power, has caused a “wait-and-see” attitude on the market, they also note. “But we feel that behind it, there is a desire to make a real estate purchase,” says Guillaume Martinaud, warning however that “it is very disparate.”
“You will have a pause until we know what political program will be implemented and by whom.”
