House prices in France have dropped significantly, with a 7-8% decrease year-on-year in the first half of 2024, creating a 'buyers' market' amid high interest rates and political uncertainty. Foncia reports an 8% decrease in price per square meter, while Orpi estimates a 7% decline. Jordan Frarier of Foncia confirms that this downward trend has been accelerating and is expected to continue.
The falling prices have revitalized the property market, which had been stagnant due to high interest rates and difficulty in securing credit. Interest rates, which were at 1% for a 20-year loan in 2021, peaked at 4.4% by the end of 2023. Orpi's latest report is titled 'Towards a Recovery Encouraged by Falling Prices,' reflecting optimism about market conditions improving for buyers.
In 2023, the property market faced a 22% drop in sales, with just over 875,000 transactions nationwide. Clément Delpirou, president of the IAD estate agents group (commercial agents – not licensed brokers), acknowledged the challenging 18 months but noted a more favorable market environment in spring 2024.
Political events also impacted the market; estate agents reported a significant slowdown after President Emmanuel Macron called for snap elections last month. However, the conclusion of the election has since reopened the market, contributing to the current positive outlook for buyers.
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