The price per square meter is falling in France, and should continue to do so in the coming months. This trend could be explained by the tightening of credit conditions, according to Sud Ouest.
Rising interest rates and inflation are two factors that contribute, as we well know, to reducing the purchasing power of households. Fewer and fewer people can therefore consider buying real estate today. Uncertainty related to the evolution of the severity of inflation contributes to this phenomenon.
However, the sellers would not have accepted this drop yet and remain wait-and-see, that is to say, by definition, they are waiting to be able to sell at a better price. Which is not a very good idea for them, as prices are likely to drop even further, said Thomas Lefebvre, Scientific Director of “Meilleurs Agents” at Les Echos.
Sandrine Levasseur, economist at OFCE-Sciences Po Paris answered questions from TF1 on the subject. According to her, the time of year we are in should be taken into account: indeed, autumn and winter often see a slowdown in real estate transactions.
In addition, a reform of the energy performance diagnosis will come into force in January 2023. Certain properties can then no longer be rented out, and renovations to bring them up to standard are very expensive for owners. Some therefore prefer to sell their property beforehand, even if it means selling it for less.
Find below the seven major French cities in which the price of real estate has fallen in the course of the last month.