Economic crisis: a winning exit with real estate
Property prices are at their highest in a decade, and were still rising during the 4th quarter of 2019. While marking a new record on the number of transactions carried out with 1,068,000 sales in old real estate. However, the 2nd quarter of 2020 will be strongly disrupted by containment measures.
The market remained dynamic at the beginning of the year, observing an increase in sales, but at the same time a fall in credit subscriptions. Notaries recommended selling rather than buying, while indicating a stabilization of the price-setting curve.
Currently, in the state of the period crossed, it remains impossible to determine precisely and reliably the evolution of real estate prices in the long term.
How will the volume of real estate sales evolve during the crisis?
The expert reports expect a 15 to 20% reduction in sales volume in 2020 compared to 2019, a relatively high decrease. However, it should be noted that 2019 being a record year in terms of transactions, 2020 should include a significant number of sales. Agreeing with the forecasts, between 850,000 and 910,000 sales should be made.
How have real estate prices already changed during the lockdown?
The evolution of prices is correlated with many factors, economic, sociological and political. The banks' attitude towards borrowing rates, as well as the pace of recovery after the deconfinement will determine the recovery of the real estate market. This is significantly dependent on the psychological factor of the buyers and sellers. The market grips in the event that buyers place themselves in a situation of waiting, immobilizing sellers.
Nevertheless, if the evolution of prices remains ambitious to be determined precisely in the long term, a major news is to be noted: a significant number of ads have seen their price decrease significantly. This fluctuation exposes the concern of sellers who want their money back by assuming that prices will fall by continuing to wait.
Do these changes herald the reversal of a bull period approaching its end or a simple temporary backlash caused by the temporary suspension of trading?
In the coming weeks, it is quite possible to see good deals for buyers, some owners may be in the need to recover their liquidity immobilized in the stone.
A corrective order is scheduled to pass in the council of ministers Wednesday, April 15, announced the Keeper of the Seals Nicole Belloubet. These corrections will relate to deadlines in the building and real estate sector. Allowing buyers, sellers and professionals in the sector to position themselves more strategically and to project themselves towards a deconfinement scheduled for May 11.
The market remained dynamic at the beginning of the year, observing an increase in sales, but at the same time a fall in credit subscriptions. Notaries recommended selling rather than buying, while indicating a stabilization of the price-setting curve.
Currently, in the state of the period crossed, it remains impossible to determine precisely and reliably the evolution of real estate prices in the long term.
You want to
to sell in Paris or its surroundings ?
Posted on 21/10/2021 by
Andy LECUYER
