Real estate: housing prices are crumbling but do not give in – Echoes

Real estate: housing prices are crumbling but do not give in – Echoes

In 2015, a new price erosion in the former is expected, not exceeding 3%. The apartments are more expensive than before the crisis of 2008

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Despite the crisis, a real correction in prices for existing homes is still not in sight. In 2014, they fell only 2.8% national average, according to estimates by Century 21, and 1.9% according to Laforet. If interest rates do not rise (see also page 27), the trend will remain the same this year, with a decline that does not go beyond 2% according Laforet or 3% (and stable sales) Century 21

According to the barometer Crédit Foncier / CSA, only a small majority (52%) of the 400 professionals surveyed. – a sample equally real estate agents, developers Wealth builders and managers – anticipates a price decline in 2015 in the former, only 40% think it will be greater than 5%. As for the new, the majority (57%) expects that prices remain stable.

“There is no price correction because low rates support the activity and that owning is a strong aspiration of the French “, says Laurent Vimont, president of Century 21. The result of this lack of market correction, despite continuously since 2011, prices of old apartments (- 2.9% in 2014) is now higher than before the 2008 crisis peaks (3,328 euros per square meter last year against 3,172 euros in late 2007, according to Century 21).

This is not the case of houses (- 2.7% in 2014), which are now cheaper than before the crisis (1971 euros per square meter against 2.108 euros end of 2007). National average, the houses (mostly located in rural areas) have a national 1,971 euros per square meter against 3,328 euros per square meter for an apartment, “a difference, like basis, nearly 70 % depending on the type of accommodation chosen “, says one with Century 21.

This largely explains why the number of sales of apartments fell 6.9% last year in the branch network, against a 1.7% rebound in home sales. Inflation of the documents required by law for a sale apartment building there is probably not for nothing.

The return of young adults

“Although 2014 was not a great year, there will be around 720,000 sales, which remains correct. The market has held up well despite higher registration fees and taxes, “said Laurent Vimont. The historically low interest rates increased the real purchasing power. Result: last year marked the return of the buyers under thirty, who supported the number of transactions in the former (- 2.7% in 2014 to Century 21 and 0.4% for Laforet) .

However, the correction is severe on the market as soon as one moves away from the big cities. In the latter, “as soon as prices fall, sales pick up and prices rise” , says Laurent Vimont. Hence the simple erosion expected this year, despite a decline much stronger prices in the second half of 2014, especially in the fourth quarter. But it would be mainly due to the sellers, become more realistic, finally adjust their claims to the market.

In addition, competition from sites like Leboncoin, realtors are considering an Internet portal that would include ads professionals, all networks. “We are only in the infancy, says Laurent Vimont. But the development of the Alur Housing Act has caused an unprecedented cooperation among stakeholders that makes this approach possible. “