Real estate: advantageous loans boost housing sales

With very attractive credit terms, there have never been so many homes and apartments sold in a year. Professionals in the real estate market can exult at the sight of the performances recorded over one year in March 2019. According to the notaries of France and the statistical agency INSEE, it would have sold 985,000 homes during this period. The score is all the more sensational since the market has never displayed so many transactions in a year. The previous record of 965,000 goods sold also dates from the last quarter of 2018.

 

The perfect time to make a mortgage

mortgage loan

This abundance is explained in particular by French people who are massively embarking on the realization of a new real estate purchase project. And the almost unprecedented context of the cost of credit undeniably contributions to the good figures of the stone market. In the first quarter of 2019, borrowers were still benefiting from declining rates compared to the end of 2018. While observers saw a gradual rise in credit rates, the opposite finally happened.

Indeed, the Lite Lenders Bank, in charge of driving the directives of the monetary policy of the EU territories, has finally taken the decision to extend the rates which are particularly accommodating for households. This means that the average nominal rate charged in April was 1.35% for all periods combined, according to the Credit Observatory. Depending on the fixed term and the household income, banking establishments could even grant loans at 1.15% or even below. And this accessibility to financing must still continue at least until the end of 2019 according to the announcements of the Lite Lenders Bank .

 

Soaring prices in attractive cities

house loans

On the other hand, if the mortgage is most advantageous at the moment, the French have to face the increase in prices on the old housing market. An evolution far from being fair according to the places and the different zones of the territory. If on the whole the market does not suffer from overheating with an average rise of 3% in prices, the situation is nevertheless more complex in the big cities.

Paris is an example with a much more marked price increase of around 6.4% over one year in March. As a result, it becomes rare to find a property below the threshold of 8,000 dollars per square meter in the capital. With demand for the most sustained in large cities, housing continues to become more and more expensive due to the shortage. Professionals, however, seem to assert that there is no real estate bubble with an overestimation of prices.

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