Published on 06/21/2020
In 2018, the real estate market is doing quite well: mortgage rates are stable. The regulatory provisions relating to zero-rate loans and the Pinel law are maintained to encourage real estate transactions and investment.
However, this trend is experiencing some turbulence. Prices are rising dangerously and this slightly slows down the number of transactions, even if the action is still favorable for both parties: buyer and seller.
Will the 2018 trend be similar to 2019? What are the upcoming trends? Presentation in the following article.
To take a concrete example, in June 2018, 61% of people questioned by Ifop for the real estate agency FNAIM maintained that the current economic situation was rather favorable to the purchase of real estate.
To go in the same direction, 44% of the same people questioned affirmed that this trend is identical for the sale of a property. 2018 therefore appears to be a positive year for the entire real estate market in France.
Real estate rates were particularly low in 2017. They have changed little since then. Stability is therefore there to delight new investors. It is therefore an opportunity to take advantage of these indices to invest in a first property or to sell your property for a larger area. Nevertheless, the stability of mortgage rates should not make us forget that the duration of repayments is, on the other hand, particularly long!
This trend also favors the renegotiation of home loans for owners who took out a loan several years ago.
Overall, prices are increasing throughout France, even if they tend to increase in certain regions, particularly in Ile-de-France. In this area, it is the old that outweighs the new. As a buyer, it is useful to find out about the facelift as specified nidouillet.com.
All in all, 2018 remains a good year for sellers and for buyers who wish to take advantage of particularly attractive rates. What will happen in 2019 on the real estate market?
After two years with particularly low rates, banks may tend to increase their rates. This is to be expected, at least, for the year 2020 !
In addition, the conditions for granting bank loans are also likely to tighten. Buyers could then be forced to have a mandatory contribution (even a minimum). Certain conditions may limit the number of buyers.
If you do not necessarily have all the optimal conditions for applying for a home loan, it is worth asking your bank for specific information on this subject.
Nevertheless, we should not panic either. This drop is expected and it will not be too large to put the market in crisis. The trend is therefore more of a slight decrease than a stabilization for the year 2019.
So if you're a homeowner, 2018 is a more appropriate year to sell, but it's not disastrous to do so in 2019 either, especially if you're in a region that's particularly popular with buyers. You can get more information on the real estate market via capital.fr.
In any case, do not hesitate to ask competent professionals (brokers, bankers, real estate agents) to refine your plan to buy or sell real estate. You can thus know the most interesting periods to take action as a seller or buyer for the year 2019.
Photo by Ilnur Kalimullin/Unsplash
Parisearch is a real estate agency in Paris.
Connected 24 hours a day to the market and its network, it responds to all requests for research or sales of real estate in Paris and the Ile-de-France.
Its objective is to accompany its customers in the realization of their project of life by securing their step and by allowing them to reach rare goods (off-market) which will make their happiness and will answer perfectly their criteria.