Real estate: how many square meters can you buy in September?

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With the drop in credit rates, households are finally regaining real estate purchasing power in September. And the situation should continue to improve in the coming months.

Buyers are seeing the light at the end of the tunnel. After seeing their real estate purchasing power fall for two years due to the rise in credit rates, households are finally regaining precious square meters. According to SeLoger and Meilleurs Agents, who presented their market analysis to the press on Tuesday, September 3, the French have regained an average of 4 square meters of real estate purchasing power in September since December 2023. To arrive at this observation, the scientific teams of SeLoger and Meilleurs Agents calculated the surface area that a French person with an average income can afford on September 1, 2024, based on current real estate prices.The year 2024 sees a positive dynamic emerging with this increase in real estate purchasing power for French households, rejoices Thomas Lefebvre, vice-president of Se Loger and Meilleurs Agents. The rebound in demand and the stabilization of supply that we have observed, after three years of increase, suggest new perspectives in the real estate market.”

This increase in real estate purchasing power, so eagerly awaited by households, is mainly explained by two factors. First, real estate credit rates have fallen by around 0.5 points since the beginning of the year and now reach 3.6% on average for loans spread over 20 years. This drop in interest rates therefore allows households to borrow a larger sum than six months ago, with identical monthly payments. In addition, French incomes have increased by 3.5% on average at the same time according to INSEE, which mechanically increases household purchasing power.

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More square meters in 2024

This increase in real estate purchasing power was particularly anticipated by households, who saw their borrowing capacity collapse between January 2022 and January 2024. During this period, during which credit rates soared by around three points, the French lost no less than 11 square meters of purchasing power. By regaining 4 square meters since the beginning of the year, a third of the loss suffered by households between 2022 and 2024 has therefore already been offset. And since good news never comes alone, the situation should improve a little more in the coming months. According to the predictions of the scientific teams of Se Loger Meilleurs Agents, the French will again gain 5.5 square meters of purchasing power by spring 2025. This is mainly explained by interest rates which should continue to fall in the coming months to fall below the 3% mark in the second quarter of 2025.