Real estate prices are falling sharply with a mixed effect of dissolution

In the second quarter, prices per square meter fell by 8% year-on-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,” Jordan Frarier, president of Foncia Transaction, told AFP.

The cause is the decline in credit rates, and “sellers who are a little more attentive and who lower their prices”.

“All real estate professionals gave the same speech, saying that we had to make a move because people could no longer follow,” also affirms the president of Orpi, Guillaume Martinaud.

According to Laforêt, house prices are falling more than those of apartments, -6,8% compared to -1,7%.

“We can clearly see that the French, even if they always dream of an individual house, which is their ideal, they know that the house is a more important financial investment” in terms of heating, exterior or fuel, explains the president of Laforêt, Yann Jéhanno.

This drop in prices is starting to stem the fall in transactions, note the three networks.

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.

“There is a wait-and-see attitude, but we feel that behind it, there is a desire to make a real estate purchase a reality,” says Guillaume Martinaud, warning however that “it is very disparate”.

“You are going to have some downtime until we know what political program will be implemented and by whom.”

“We have two opposing types of behavior,” explained Yann Jéhanno. “Those who already have an advanced project, who want to take advantage of the rates that they have currently managed to negotiate with their bank (...), others who are putting it on hold” while awaiting the outcome of the polls and its consequences for the economy.

Illustrative image of the article via Depositphotos.com.