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  • Writer's pictureJean-Christophe DIMINO

Household morale, rates and semi-main residences

Updated: Apr 10, 2021

This week, I have selected 3 news items in the real estate sector.

Once more this spring, we are living at the rhythm of new restrictions, which are not as bad as expected. As far as the real estate sector is concerned, visits to flats and houses are maintained during the day, and removals are also still possible. Only estate agencies in the departments concerned cannot receive the public. In short, this unnamed deconfinement has very little impact on the real estate market. If not on the morale of households.

A Se Loger-Opinionway survey unveiled one year to the day after the 1st confinement tells us that sellers are regaining hope. At the beginning of spring, 56% of the sellers surveyed say they are optimistic. They consider that it is the right time to sell. On the other hand, only 46% of buyers think the same. Overall, confidence seems to be high, with 58% of project owners confident that their purchase will be successful. 49% of buyers think that the health crisis will create new opportunities, compared with 45% of sellers.

The final finding of this study is that less than a third of those questioned anticipate a decline in supply. In the same proportions, 32% of buyers say they are worried about prices, which they consider too high, with 83% of the under-35s giving this reason.

As for interest rates, bank rates for the month of March are rather stable. Attention will be paid to the conditions for granting loans, which remain just as tight depending on the profile.

For a household with an income of more than 50,000 euros per year, expect to pay 0.58% excluding insurance for a 15-year loan, or even 0.40% for a 20-year loan.

Below €50,000 in annual income, you can expect 0.79% over 15 years and potentially 1.03% over 20 years, 1.27% over 25 years. Here again, the weight of insurance will make a clear difference from one case to another, especially as banks must now include the amount of insurance in the calculation of the debt ratio.

Ask your account manager for information, and even double the estimate by using a broker.

The new concept of semi-main residence. Where we talk about high-end secondary residences again. Successive confinements have accentuated a natural need, that of being able to escape the big cities. This phenomenon is exploding and creating a new niche. With a certain attraction for luxury properties at more or less 2 hours from a large metropolis. Demand is very strong on the Basque Coast, Brittany, the Côte d'Azur and even in the mountains, such as Chamonix. The ideal property combines indoor and outdoor space in an area where the networks allow teleworking at a sufficient speed.



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