French housing market experiences first quarterly drop since 2015

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Published on
Monday, June 12, 2023 9:55 a.m.
by the Meilleurtaux editorial team

The situation on the French housing market does not seem to be improving anytime soon. The Notaires-Insee index, in the former, average housing prices fell by 0.2% over the first three months of 2023. This is the first quarterly drop since June 2015. -de-France is particularly affected, with a sharp drop in prices and volumes.

Slowdown in the rise in real estate prices

For several months, the increase in property prices has slowed significantly, falling from +6.4% and +4.6% in the third and fourth quarters of 2022 to just +2.7% in the first quarter of 2023. On average, after the Notaires-INSEE index, which is authoritative in the field, goods sell for 0.2% less across the country. House prices had not fallen since 2015.

Disparities are observed between the different types of goods.

ImportantHouse prices increased by +3.1% over one year between January 1 and March 31, 2023, against +2.2% for apartments.

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Marked decline in prices and sales in Île-de-France

THE notaries of Greater Paris also note differences between the different regions. Their figures show a

Decline in prices of older properties more marked in Île-de-France, with -1.1% in the first quarter of 2023.

In one of the Ile-de-France departments outside Paris, the square meter now costs 6,640 euros on average, a figure down 1.2% over one year. In the heart of the capital, where prices had reached unprecedented peaks in recent years, the average is 10,310 euros per square meter, down 2% over one year.

In parallel, the volume of transactions fell by 22% over the three months, which corresponds to 9,400 fewer sales over this period alone. The situation is of great concern to notaries. They point to all the challenges the market has faced and continues to face,

In particular the sharp rise in interest rates and the tightening of credit conditions.

• On the one hand, the debt standards imposed by Bercy, with a ceiling of 35%, even penalize certain households with comfortable incomes.
• On the other hand, the banks require an increasingly substantial personal contribution. These are all factors that are holding back demand.

In order to be informed on the evolution of the real estate market, regularly observe the real estate rates, the real estate selling prices and the desires to buy.