Real estate market, the party is over?

An exclusive study, carried out by PAP, from September 1 to 30, 2021, suggests a return to reason in the real estate market. The search for homes for purchase fell by 6,5% compared to September 2019. On the other hand, the criteria which emerged in favor of the health crisis remain relevant: strong appetite for houses, and small towns and rural areas are the only ones to register an increase compared to 2019.

Back to reason: trees do not rise to the sky

The health crisis and the successive confinements have been a real real estate developer for many French people. Spending a lot more time in your home changed the way you looked there. This has fueled a strong desire for change, from the lightest to the most radical: decoration, renewal of furniture, redevelopment work, even extension of houses ... And of course moving! In September 2020, the number of searches to purchase increased by 48,1% compared to 2019, and a few months later, the notaries announced a historic record for the volume of transactions.

This phase of records now seems to be over. In September 2021, the search volume fell by 36,9% compared to 2020, and is thus found 6,5% below its 2019 level. It is therefore a real rebalancing compared to the frenzy that had started in May 2020 following the first confinement.

In terms of search criteria, there is a before and an after Covid

The health crisis was also at the origin of a real break in the criteria for searching for housing, illustrated by an increased appetite for, on the one hand, small towns and rural areas and, on the other hand, houses. individual.

In September 2021, the effect of the health crisis is still visible. Thus, small towns and rural areas are still doing well, as can be seen below: + 21,9% compared to 2019. This is the only type of town that is on the rise over two years. The large metropolises in general and Paris in particular, recorded a significant drop in searches compared to 2019.

The same goes for houses that have been the subject of a plebiscite that has never been denied since. And this remains the case in September 2021, even if we observe a slight rebalancing compared to 2020. Houses represent 63% of searches in September 2021, against 59% in September 2019.

The evolution of search criteria is closely linked to the situation of teleworking. However, we can see that telework has survived the health crisis since it is now largely institutionalized in many companies. But in the vast majority of cases, at a rate of one or two days a week, far from the 100% in distancing of the last months. This is forcing some buyers to review their projects and to go less far than initially envisaged.

Salespeople must adapt to this new situation

The decline in the number of buyers in the market is forcing sellers to review their sales strategies. They must show pragmatism and vigilance.

1 / Study the selling price carefully

The decline in the number of buyers in traditionally tense areas will automatically limit the number of contacts, a fortiori, for sellers with market price benchmarks that are too high. It is therefore important to quickly correct the situation in the event of an overvaluation of the property, otherwise it will remain on the market. In addition, you must be open to negotiation, especially if you are in a hurry to sell!

As part of its coaching offer intended for sellers, launched in 2019, PAP offers an appraisal of the property carried out by an expert and giving rise to a written opinion of value with a guarantee of independence since PAP is not interested in the transaction amount.

Verbatim seller (ad D80 / 0618): “Thanks to the PAP coaching service, we sold our apartment fairly quickly and at the right price. For a sum of € 690 (payable in 5 installments) we benefited from the screening of calls (agencies automatically turned away), a weekly return from PAP, a photo technician, useful documents for visits and sales . There is also a legal service available. Our coach (Ms. Sanga) was very available. The service is more efficient than an agency (experience gained!) And above all without exorbitant commission ”.

2 / Take care of the presentation of your offer

The vast majority of searches are now on the Internet, and the first thing buyers see are photos. To make a good impression, you need quality photos, and in particular to avoid the two big mistakes of real estate photos: backlighting (which gives the feeling that the accommodation is dark) and bad framing (which reduces the surface area of ​​the rooms. ).

For an optimal rendering, sellers can also bet on the virtual visit, which is a double winning solution since it allows to enhance its ad while limiting the physical visits to only really interested buyers.

PAP offers sellers virtual tours carried out by a professional photographer using specific equipment, which will illustrate the advertisement. This service is also included - along with professional quality photos - in the coaching offer.

Verbatim seller (ad D30 / 0645): “The virtual tour of our house was a real 'plus' in the sale of our house ... even more during the confinement period! We do not regret having used your services at all! Full satisfaction of having called on PAP to carry out a virtual visit of our property, which clearly favored the sale. "

3 / Don't waste time

In October, many sellers believe the “sales season” is over and plan to wait until next year to start selling. In normal times, this is already a strategy that we do not recommend, because it risks putting them in a hurry, but we sell better when we are not in a hurry.

And in this particular context, the decline in research leaves some doubt as to the future of the market in the short and medium term. It is therefore safer to start selling as quickly as possible. The decline in the number of buyers may require more time to close the sale. Starting earlier is the guarantee of making contacts now.

PAP's coaching offer is valid for a period of one year to cover a full real estate year and allow sellers not to postpone their marketing.

Verbatim seller (ad D74 / 0570): “We thank you for everything. Our house was sold quickly at the asking price through your site. The quality of the photos and video are exceptional. The PAP service and the technical resources made available are at the top! "