After months of decline, real estate prices have stabilized since last spring and are expected to continue to stagnate until the end of 2024, according to the National Real Estate Federation (Fnaim).
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The worst seems to be finally over for the real estate market. This is the observation of the National Real Estate Federation (Fnaim), which published its latest economic report this Thursday, September 19. According to the Fnaim, real estate prices fell by -5% between mid-2023 and February 2024, on a national level. Over the last twelve months to mid-September, the decline in prices slowed to -2.2%. This downward cycle concerns almost the entire territory, including tourist areas, such as seaside and ski resorts. The ten largest provincial cities have even seen their prices fall by -5.3% over one year, and the fall is even more spectacular in Paris (-6.7%). “The sharp rise in real estate loan rates in 2022 and 2023 has led to a salutary drop in prices to preserve the purchasing power of buyers,” comments the Fnaim.
But good news for sellers, the market is starting to pick up. Real estate prices have finally stabilized since last spring, reaching an average of 2,937 euros per square meter in September nationwide, apartments and houses combined. That is a slight increase of +0.3% over the last three months. The same trend is observed in the Ile-de-France region (+0.9% over the last three months) and in the provinces (+0.2%), where average prices reach 5,557 euros and 2,382 euros per square meter respectively.
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Prices continue to stagnate
According to Fnaim, this stabilization of real estate prices should continue at least until the end of 2024.There should not be a real rebound in prices until trading volumes actually start to rise again.comments the Fnaim. The real recovery will not take place before 2025. The market will regain its dynamism when first-time buyers regain better purchasing power.“This could happen quickly since credit rates should continue to fall by the end of the year, to approach the 3.20% mark.
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The situation is also improving slightly in terms of transactions. While the number of real estate sales fell by -21% in June over a year (to only 792,000 sales), the decline over twelve months should be limited to -8% at the end of 2024.The decline in activity continues, but its pace is slowing, continues the Fnaim. This trend towards stagnation at a low level should continue in the coming months, linked to the stabilization of credit production.»
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