Real Estate

Real estate prices are rising despite the drop in activity

Real estate prices are not falling, despite a significant drop in activity linked to the coronavirus epidemic.

Housing prices are rising, according to the LPI-SeLoger barometer released Monday, May 25, as activity plummets. ” In an old housing market, which has experienced a brutal and massive drop in sales never seen since the end of the Second World War, the rise in prices has continued “Writes Michel Mouillart, spokesperson for the barometer. The price per square meter in old real estate in France – which reached € 3,571 – recorded 5.2% annual increase.

This increase could be explained by the social composition of property buyers. Low-income households buy less due to the crisis, but wealthy households are over-represented, which would tend to ” mechanically reinforce the upward shift of the price curve “Write the authors of the study. Price pressures are therefore not easing.

Metropolises embody the upward price trend

Large cities are largely spared from the crisis and metropolises perfectly embody this upward trend. Prices fell only 5% in cities with more than 100,000 residents. However, the price increase exceeds 10% in Mulhouse, Montreuil or Villeurbanne, and even in Metz where the price per square meter is up 12.4% over the year. Those of houses are also increasing, especially around Brest, Grenoble, Rennes or Strasbourg. According to the LPI-SeLoger barometer, the price increase is more marked due to the desire for a garden or terrace, linked to containment. The French want space.

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Number of sales agreements dropped by almost 48% over three months

However, the real estate market was almost paralyzed at the end of April. The number of sales agreements dropped by 47.9% over three months according to LPI-SeLoger. However, the trend is towards recovery. And negotiation margins tend to stabilize, reaching an average of 3.7% of the posted sale price. A status quo explained by the attitude of some of the owner-sellers who, according to Michel Mouillart, ” prefer to withdraw their goods from the market pending recovery rather than revise their ambitions downwards

The first official data are expected on May 28 and 29

On Thursday May 28 and Friday May 29, the first official data from the real estate market during the crisis are expected. The notaries will first communicate their figures, established with INSEE, on the number of sales of old homes in France and the evolution of their prices in the first quarter, according to Sud-Ouest. Then the Ministry of Housing will give the prices for the new one and detail how many houses and buildings have obtained a building permit between February and April, and how many are under construction.

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