ACTUALITÉS ET CONSEILS IMMOBILIERS

Publié le

Wednesday, January 23, 2019 - 15:29

Has your real estate purchasing power increased in the last six months?

Has your real estate purchasing power increased in the last six months?

The constant but slight decline in interest rates has not fully offset the incessant rise in property prices. Confirmation in figures with the biannual barometer of the broker Meilleurtaux.com: out of the 20 largest cities in France, the purchasing power for real estate has progressed, these last six months, for eight communes. For seven of them, it has increased only moderately (between 1 and 2 m²).

Pouvoir d'achat

Only one, in this case Le Mans, saw the purchasable surface, for a monthly rate of 1000 euros, a strong growth (+11 m²). The explanation is simple: in the last ten years, real estate prices have fallen by nearly 14% in the prefecture of Sarthe, despite its proximity to Paris. The apartments are sold there on average of 1341 euros per sqm, according to the evaluation site Meilleursagents.com. A price seven (!) times lower than in Paris.Le Mans has also benefited from the decline of the rental rates.
Conversely, for ten other cities, the purchasing power of households has declined. This is the case of Paris (-1m² in six months) and two other provincial cities, namely Lyon (-2m²) and Bordeaux (-3m²), where the prices have increased the most in recent months. The residents of these three cities could not hope to afford, by borrowing 215,000 euros (average loan) and repaying each month 1000 euros, a property whose surface is between 22 and 47 m². Their surface area is very small whereas the rates taken into account are those recorded by Meilleurtaux.com for the excellent dossier (0.96% over 15 years, 1.12% over 20 years, 1.45% over 25 years).

Eight out of twenty cities where the purchasing power of real estate has progressed: the record is very negligible. And yet, rates below 1% for loans with a duration of 15 years or around 1% for those over 20 years, are legion . "The records are reached and even pulverized," said Maël Bernier, Meilleurtaux.com who also highlights a change in the profile of happy recipients of record rates. "Hitherto reserved for excellent files, discounts are now commonplace including for borrowers who have no contribution, over long periods, regardless of the age of the applicant for the acquisition", she says.

It remains to be seen whether the rates will remain so low by the end of the year. "There is no panic to be on that side," says Maël Bernier. Some local banks, having too many files to manage and not enough agents available, could possibly increase their rate a little. But that will not change the trend: in September and October, the big sale will be launched. "