Real Estate Prices Remaining Stable or Decreasing in 51 Cities: A Positive Trend!
All Right, Let's Talk Real Estate, Shall We?
Burgling through the upturn in housing transactions, real estate agents are tugging at sellers' heartstrings with a firm message: Don't be a greedy git! The latest figures on old apartment prices, dished out by SeLoger and Meilleursagents, seem to suggest that they're getting through to them. In April, the average square meter price for the 51 largest cities in France remained neck-deep in stagnation. Since January, the total increase has limped to a measly 0.3%. A little over half of the cities (26) saw their prices take a dive.
Cities experiencing hefty decreases include the likes of Caen, La Rochelle, and Nice (popular spots for those seeking a glamorous Riviera getaway, bizarrely), where prices haven't plummeted since the real estate crisis hit 2.5 years ago. Curiously, Lille and Orleans were the only communes that didn't budge between April 1 and May 1. As Guillaume Martinaud, big cheese at the Orpi cooperative of real estate agencies, remarked in a quote made particularly for our website, "We're finally getting through to sellers."
The cute little sales pitch goes something like this: If a property fails to sell within a month or two, chances are it isn't priced right. Worldwide trend indicate that credit rates are steadily clambering up and out of the dumpster, where they'd been resting since the end of 2023, close to 4%. Rate hikes could send buyers scurrying and wait for the storm to subside. SeLoger isn't so sure rates will drop significantly anytime soon, given the chaos that seems to be brewing in the old world's economic and geopolitical spheres. Guillaume Martinaud advises sellers to heed the following warning: "Buyers can only borrow a certain amount. If you price your place too high, you might find yourself sitting on an unsold property for who knows how long."
But oh, the cruel irony! Sellers in ~~Gorilla Hell's Playground~~ Montpellier, Marseille, Paris, and Toulouse would only laugh at such foolhardiness. Prices in these cities have been soaring, with increases of 0.4%, 0.6%, 0.2%, and 0.9% respectively in April. Meanwhile, in much humbler cities, prices have skyrocketed up to 1% over the same period – think Le Mans, Saint-Etienne, and Metz.
It's a serpentine world, wasn't it? Prices in Bordeaux, for instance, have inched up by a mere 0.6%, less than the average rate increase in other cities. A caveat: Bordeaux was hit particularly hard with a 13% drop when rates spiked in 2022 and 2023. As SeLoger observes, the current increase is lower compared to other cities.
In the end, it's a painstaking wait for the average java joe who's scanning the property market for their perfect abode. But who knows, maybe your impeccable timing and a dab of luck will land you a diamond in the rough. As always, don't forget to consult the experts and make sure you're hooking up that mortgage at the right rate!
Disclaimer: All information presented here is intended for entertainment purposes only. Always consult a trusted real estate advisor before making any buying or selling decisions.
Sources:
- SeLoger and Meilleursagents
- Guillaume Martinaud, President of the Orpi cooperative of real estate agencies.
- The prices for apartments in Rouen, as reported by SeLoger and Meilleursagents, experienced a minimal increase, adhering to the overall stagnation in the 51 largest cities in France.
- While the average real-estate investment across France saw only a 0.3% increase since January, the finance sector is projected to climb out of its post-2023 slump, possibly affecting the buying behavior of investors.
- As predicted by Guillaume Martinaud, the increase in credit rates could influence potential buyers to delay their investments, making it essential for sellers to price their properties competitively to avoid lengthy waiting periods.
- Despite the overall trend, there are select cities in France, such as Montpellier, Marseille, Paris, and Toulouse, that continue to see an increase in apartment prices, providing a challenging market for those seeking real estate investments.
