17:02 â–ª
3
min reading â–ª acc
The real estate loan market in France suffered a major shock in the first half of 2024. The data shows 36% of new loans. This decline reflects the tight economic situation where interest rates, while falling slightly, have not been enough to revive the market. More details in the following paragraphs!
French real estate lending is the lowest in 10 years
Even today, the French real estate market is trying to recover. The total volume of new housing loans without renegotiations amounted to 47.3 billion euros between January and June. This represents a year-on-year decrease of 36%. This is the lowest level since 2014.
Despite interest rates being slightly more favorable for borrowers, households are struggling to acquire property. These last ones passed from 4.17% in January to 3.70% in June The purchasing power of the French has been hit hard, with rates almost 2.5 times higher than in the first quarter of 2022.
Slowing property market: What is the impact on the French economy?
In this context, those interested in real estate do not flock. The main brake remains still high real estate pricesdespite slight signs of falling interest rates. Banks and brokers also believe that the market is constrained by certain rules issued by the High Financial Stability Board (HCSF).
THE the political context of the month of June added a degree of uncertainty and a wait-and-see approach to households. Only a few signs of a timid recovery are discernible, with the volume of new housing loans in June amounting to €8.6 billion. This is the second best month of the year.
Despite some signs of recovery in June, the mortgage market remains in trouble. Overall, the quiet summer months could make matters worse. Hope for a permanent recovery appears to be a fundamental stabilization of the economy and a drop in real estate prices.
Maximize your Cointribune experience with our “Read and Earn” program! Earn points for every article you read and get access to exclusive rewards. Register now and start reaping the benefits.
Join the “Read and Earn” program.
My name is Ariela and I am 31 years old. I have been working in the field of web development for 7 years. I only discovered trading and cryptocurrencies a few years ago. But it’s the universe that interests me a lot. And the topics covered within the platform allow me to learn more. A singer in my spare time, I also have a great passion for music and reading (and animals!)
DISCLAIMER OF LIABILITY
The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.