While buyers are present in the real estate market – “We have never had so many visits to our sites. They have recorded up to 70% more search volume since April, Séverine Amate, spokesperson for SeLoger, confides to the JDD. And it is not only “window shopping.” The desire to take action is characterized by making contact with the agents.. “- the number of announcements tends to decline. The real estate market is well and truly in a shortage situation with supply shrinking while prices keep increasing. What is this situation due to? Elements of explanation.
The health crisis has increased the tension on the real estate market
As might be expected, the current shortage of real estate which pre-existed the Covid-19 crisis, has worsened in recent months … In fact, real estate is considered a safe haven in the eyes of a large number of French people and this appetite for stone has even increased since the health crisis. Frustrated not to have been able to materialize their projects, the candidates for the purchase of real estate thus hastened – as soon as deconfined – to carry them out. This technical rebound resulted in a 460% increase in transactions between April and July. It is also clear that the increase in demand is generalizing. This upward trend has also resulted in an increase in the volume of searches – carried out on our sites since last April – which can reach 70%!
Owners who doubt
While candidates for the purchase are working hard to quickly realize their projects, on the side of the owners, theuncertainty linked to the health situation pushes them to postpone their sales, thereby contributing to the shortage of housing supplies. Indeed, the impact of the Covid on the French economy is causing concern among owner-sellers, not only about their own cash flow but also about the purchasing capacity of potential buyers. According to a SeLoger study, 71% of applicants for the sale of a home fear a deterioration in living standards in France. The number of properties for sale on the main real estate sites thus shows a decrease of more than 10%. As for real estate activity, it fell in 2020, posting a loss of 16.1% over the year (Source: LPI-SeLoger Barometer).
Owner-sellers: an endangered species …
Because they are less and less numerous, it is an understatement to say that they are the sellers who currently have a hand in the real estate market. And for good reason, the imbalance between potential buyers in excess and goods for sale which are becoming increasingly rare makes you dizzy. Although they are ultra-courted, it is interesting to note that the owner-sellers are not very optimistic. Indeed, according to our study, 35% of them say they expect a drop in prices, while only 29% anticipate a rise …
Although the real estate tension is building reduce sales times, 35% of owners fear that they will not sell quickly enough. Another reason given by owners to justify postponing the sale of their property is the fear that 26% of them have of selling below the market price. However, the tension of the market means that many sales are now made at price.
Buyers must show a white paw!
In a hyper-tense market such as the French real estate market, it is increasingly common for buyers to show themselves ready to buy at price, without even trying to negotiate! More than ever in a position of strength, sellers can even afford to decide who they will sell their property to. Only the best files thus have a chance of being selected… This competition is fueled by the tightening of access to credit, which, by de facto excluding the poorest households from the market, has caused an over-representation of the wealthiest buyers. . “The production of mortgage loans to individuals is down 14.2%”, specifies Michel Mouillart, spokesperson for the LPI-SeLoger Barometer. Result: the negotiation margins are down 17% in 2020, to stand at 4.2%.
A particularly limited offer in metropolitan areas
The buying fever is also affecting the outskirts of large cities! Since the health crisis, goods that are more spacious and / or have an exterior (balcony, terrace, garden) are even more sought after than they were pre-containment. The attractiveness of the close metropolitan suburbs is thus reinforced and the prices there sometimes increase more quickly than in the city centers. It should also be noted that the tension is felt both in the transaction market and in the rental market. An increasing number of tenants, fearing that they will not find a property to rent, choose to stay in the one they occupy, melting the turnover rate like snow in the sun and thus contributing to fuel the housing shortage …