Downturn in real estate prices creates opportunities for buyers

The real estate market in France is facing a difficult time, with the spring season showing no signs of bringing a revival in activity. Prices are continuing to fall, although rural areas are still showing progress while the Top 10 cities are experiencing a decline. Buyers are now able to negotiate prices, with Paris seeing the most significant negotiation rates, reaching -3.3% in March 2023. This increase in negotiation confirms the downward trend in the market, and to sell successfully, sellers have to accept lowering their sales price downwards in order to sell successfully.  Clearly, especially in Paris, it is a ‘buyer’s market’.

The decline in activity is also due to financial instability, difficulty obtaining loans, and the regular rise in credit rates, causing sales to fall by -15% in March 2023 compared to the same month in 2022. The decline in loan production granted to households is also expected to cause a further decline in activity in the coming months.

Although rural areas are still progressing upwards in sales numbers, the Top 10 cities are experiencing a decline, except for Strasbourg, Lille, Rennes, Nantes, and Marseille, which are showing slight increases. However, this burst of positive sales numbers is not expected to lead to a trend reversal, and a continued downward trend is likely for most of these cities as well.

Nice is the only city that has escaped the downward pressure since the beginning of the year, with a 2.1% increase, thanks to its clientele composed mainly of second-residence buyers, who are less dependent on loans. This increase in negotiation confirms the downward trend in the market, and to sell successfully, sellers have to accept revising their claims downwards.

In conclusion, the French real estate market is experiencing a challenging time, with the spring season showing no signs of bringing a revival in activity. Prices are continuing to fall, and negotiations are now part of the game again. The decline in activity is also being attributed to financial instability, difficulty obtaining loans, and the regular rise in credit rates, causing sales to fall, and a more significant decline is expected in the coming months.

Source: https://backyard-static.meilleursagents.com