Local expert, worried sellers and borrowing rates
This week, I have selected 3 news items in the real estate sector.
It is stronger than we are. We are in love with stone. Real estate is one of the French people's favourite topics of conversation. Not everyone has a plan to buy or sell a property, but everyone is on the alert. On the lookout for information. And as there is no shortage of experience in this field around us, we talk to our colleagues at work to ask for their informed opinion. We turn to our friends and family, and to the media too. Does it speak to you?
Suddenly, you are sensitive to the latest press coverage, to the slightest news item, the slightest report that talks about real estate in general. In the end, you're on the verge of overdosing. You have the feeling that you've covered everything, that you've formed an opinion. But you rarely start by consulting a real estate specialist in your town or neighbourhood. Often as a last resort. Almost reluctantly. So why? I invite you to read the rest of this post by clicking below.
« Why vendors are worried »
This was the headline in the Journal du Dimanche a few days ago. The JDD reported on an Opinion Way survey commissioned by the Se Loger platform.
What is the concern?
1 - the number of property advertisements is down by 10% in volume at national level
2 - sellers are hesitating to put their property up for sale, cancelling or postponing their project
This is true almost everywhere in France, and I can confirm that this is also the case in Nice. This survey tells us that before the coronavirus, sellers were only 1 in 10 to think that prices could fall. Today, they would be 1 out of 3 to fear a fall, hence the brake on the stock of new properties on sale.
Another figure. Before the health crisis a year ago, 83% of the French people questioned considered that it was the right time to sell. Today, only 34% are convinced. At the same time, it's stuck because the level of research is high, the demand is still there. If we believe the traffic of the platform Se Loger - but it is also confirmed in agency, at home for certain types of property - the survey puts forward the figure of 70% more research recently. This data should be taken with a grain of salt and I refer you to what I said earlier: real estate is a national sport. Even if we don't have a specific project in mind, we French people consult ads a lot, often out of simple curiosity but also to compare our property with those on the market.
The real estate market is changing, as illustrated by the interest rates. A double-sided mirror. Firstly, the number of bank loans has fallen sharply in volume: a spectacular 22% drop in one year. The fault lies with the economic context, job losses and short-time working. And at the same time, loan rates are at their lowest. We are even approaching an all-time record. Across all maturities, banks lent at 1.14% in February, according to Observatoire Crédit Logement
This is good news that will support activity, although not everyone will be on the same footing in these cases. In addition to income, it is important to be able to count on a more substantial contribution than before the crisis and on a debt ratio that is within the limits.