The Notaries of France recorded 970,000 transactions in old real estate in 2018, 2,000 more than the previous year. A slight increase despite real estate prices that have taken + 3.3% on average in one as revealed by their latest note of real estate market published in late April. Which highlights the role of low mortgage rates in this healthy market.
No, all prices do not increase
The price of apartments in France (+ 3.5%) is faster than that of homes (+ 3.1%), and real estate in Ile-de-France (+ 4.2%) is also more impacted than in the provinces (+ 2.9%). But this rise in prices does not discourage buyers, because this is not the reality of the entire territory: this is certainly the case in the Paris region and in major cities, but this only affects 45% of the departments French, against 40% down and 15% in a stable situation!
An East-West match
France is cut in two in terms of real estate prices in 2018 according to the Notaries of France. On the one hand, the agglomerations of the West of France are gaining value (+ 6.2% for an apartment in Rennes, + 13% for a house in Montauban). On the other hand, those in the East are down in the image of Nancy (-7.3% for an apartment) or Toulon (-0.9% for a house). At the end of May 2019, the Notaries of France provide a price per square meter to € 9,790 in Paris, which requires a significant personal contribution and oftengood borrowing capacity, and a price increase over one year throughout France 4.4% for apartments and 2.9% for houses.
Low rates support demand
The stormy social climate that has been raging in France for several months is not expected to have a significant impact on the real estate market, according to this note of conjuncture, which is based on the safe haven that stone still embodies and low mortgage rates that motivate home buyers. At an average of 1.39% in March according to the Housing Credit Observatory / CSA, these floor levels contribute to the solvency of households. They see the low mortgage rates as a unique opportunity to buy their home, as shown by the increase in housing loans in 2018 according to figures from the Francia bank (+ 5.8%).
The nine suffering
The only drawback of the Notaries of France: the small health of new real estate in 2018. Construction at half-mast (-16.9%), bookings down (-3.1%), cancellations in progress ( + 8.9%)… The tightening of the Pinel system and the rise in prices in areas in tension are not fully offset by a mortgage loan more than ever accessible.
