Real estate old : the price increases are expected to accelerate




Despite a rise in credit rates, the real estate market former is expected to remain very active according to the notaries. The year 2016 had already been very dynamic according to the professionals that anticipate a decrease in inventory of goods.
The observed dynamics in the past year on the real estate market in the former has continued during the first quarter of 2017. The number of dwellings sold continued to grow : at the end of the month of February, it was 867.000 twelve-month rolling period (+7.7 per cent), even beyond the previous record, set in 848.000. The low interest rates, therefore, maintain the activity, in spite of a “slow ascent that it does not discourage buyers“, as highlighted by the notaries in their notes. The observatory Credit Housing/CSA note that the interest rate real estate loans granted to individuals by the banking institutions amounted to 1.51% in march 2017 (compared to 1,49 % in February), corresponding to the level of July 2016. For the professionals, “the element of fear” would be “a disproportionate increase” of these interest rate : it “would hamper the financial capacity to purchase, and disrupt the current balance“. The observatory notes that, until now, the rise of the rate of real estate lending was “neither quick, nor very strong, “and that it “remains well below that of the rates of the bonds“. The high level of activity found in 2016 and early 2017 will be a consequence : “depleted the number of buyers in power who have found what they were looking for” and decrease the stock of goods to sell.
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At the end of the month of may, the price of the goods, the former should have increased by +4.3% on the twelve months for flats and +6.1% for houses. In the fourth quarter of 2016, the price had already increased by +1.7% in France, +1.9% for apartments and +1.5 % for houses. A trend that has affected “most of the departments of the province, “but which is expressed more or less intensely. Only three cities have seen the prices of apartments fall in the last quarter of 2016 : Saint-Etienne (-5 %), Toulouse (1.5 %) and Marseille (down 1.3 %). All the other regional capitals, have seen prices increase over the same period : between +1 and +2 % to Dijon, Nice, Reims, and Tours, between +2 and +5 % in Aix-en-Provence, Besançon, Brest, Grenoble, Lille, Montpellier, Nantes, Rennes and Toulon. The increase was even higher than in Lyon (+6,2 %), Strasbourg (+6.8 %) and Bordeaux (+11.2 per cent). For older homes, a few cities in the north of the country are reporting a decrease (Bethune -3,6 %, Valenciennes 4.3 per cent or Nancy a 6.9% reduction), but others have seen an increase, in the image of Bordeaux and Toulon (+8 %).read also

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