REAL ESTATE: In a favourable context, buyers are becoming more …
Never seen. Month after month, credit rates fall. “It does not stop. The banks seem to always go further in the race for the best rates, “says Cécile Roquelaure Director of Studies at Empruntis . According to the broker, a mortgage of 200,000 euros over 20 years costs 55 069.54 euros less today than five years ago.
Thus, “good income and can borrow from 1.15% on 15-year, 1.41% over 20 years and 1.56% over 25 years is the rate between 15 and 20 cents lower compared to March . The average case files have similar reductions with now posted rates to 1.80% on 15-year, 2.10% over 20 years and 2.30% over 25 years. ”
“This scheme would wake the dead”
“The rate cut is so powerful and so weak credit costs that the scheme would wake the dead,” adds Sébastien de Lafond, president of Meilleursagents.com.
In order to boost economic activity, the European Central Bank drastically lowered interest rates . Result, “banks that borrow at very low rates and then lend, individuals at very low rates,” says Meilleurtaux.com .
In this favourable context, buyers are becoming more numerous. In the first quarter, the Guy Hocquet network, found an increase in transactions of 2.5%. Same story at Century 21, where over the past 12 months, the number of transactions rose by 12.1%. In 2015, transactions in existing homes had already increased by 15.7% asthe index Notaries-INSEE .
The wind seems to turn
Besides low rates, buyers are taking advantage of lower prices: -5.1% between 2012 and 2015 according to Century 21. And even 11% in Paris since the peak in July 2011 according to Meilleursagents.com.
But the tide seems to turn. In late February, the index Notaries-INSEE noted that the prices of existing homes in France were up 0.5% in the fourth quarter 2015 compared to the previous quarter even with an increase of 0.6% for houses, never seen since 2012.
“After a continuous decline in four years, the price curve was reversed,” now finds Laurent Vimont, president of Century 21 France. “” The great teaching of early 2016 is that prices will decline further and should even increase. The market, still marked by a shortage of housing, demand exceeding supply, and exceptionally low borrowing rates, is in favour of an uptrend, “said Fabrice Abraham, CEO of Guy Hoquet network. And the increase seems more important in Paris when province with an increase of 2.5% to 8319 euros per m2 according to the calculations of Century 21.