Rising interest rates are limiting household debt margins. The volume of transactions is slowing and experts expect prices to stabilize.
"The real estate market will come back down to earth and we shouldn't panic," said Frédéric Violeau, a notary in Caen in northern France and in charge of national real estate statistics for the Conseil Supérieur du Notariat (Higher Council of Notaries). "The stabilization is welcome and consistent, after the surge in real estate transactions and prices since the end of the first Covid-19 lockdown in mid-2020." It is a "European and even global [phenomenon] that has affected most OECD countries," he added.
In mid-2020, households were looking for extra room and a little more green space, enough to consider an investment. At the close of 2019, just before the outbreak of Covid-19, France surpassed one million real estate transactions for the year. The record was beaten two years later at the end of 2021, with more than 1.2 million completed transactions.
Source: Le Monde
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