The market has become more and more favorable for buyers. In his last report observes the Bank of France “A Clear Fill” of production of real estate loans. While banks have been granting fewer real estate loans for about two years, the trend seems to have been reversed since last April when the production of housing loans (excluding renegotiations) reached 8.9 billion euros, compared to 6.9 billion the previous month. A dynamic that has been confirmed since the month of July has recorded a peak that exceeds 10 billion euros. Even better: the number of funded files jumped 48.6% in August compared to last year, according to the Housing Credit Observatory/CSA.
“Banks wanted to grant more real estate loans at the beginning of 2024, analysis Caroline Arnould, director general of CAFPI. However, the demand was not there because the rates were still too high. Banking establishments, lagging behind their credit production goal, begin to finance more real estate projects. » Especially since they anticipate a drop in key rates, dictated by BCE. This Thursday, September 12, the latter could lower the deposit rate – which serves as the basis for credit conditions applied to banks – by 25 basis points to reach 3.5%. If this reduction is recorded, Banks could therefore grant loans more easily.
In other words, anticipating this drop in rates and wanting to meet their goal of granted loans, banks are more flexible and have already reviewed their needs. “All banks tend to lend more from this summer and are open to negotiation, especially with first time buyers that they particularly targetadds Caroline Arnould. Some banks may, for example, be less careful 20% contribution required or can extend the loan term from 25 to 30 years to allow the customer to increase his purchasing power. “The margin of negotiation can be made either on the interest rate, on the borrower’s insurance and also on the duration of the loan”specifies the brokerage specialist.
It remains to be seen if this more favorable context for loans will continue. According to the forecasts of the Housing Credit Observatory / CSA, the production of real estate loans should reach 150 billion euros by the end of 2024, and from 160 to 170 billion euros in 2025. “The market is recovering and the projections are +15% for the distribution of credits in 2025”comments Sophie Ho Thong, deputy general manager of the Finance Conseil brokerage group.
As for rates, the CAFPI is counting on a further drop to approach 3% at the end of the year, compared to 3.6% currently and 4.1% in January. “Now is a good time to buy,” advises Caroline Arnould. Especially as real estate prices continue to fall (-3% in a year in April, according to Best Agents / Accommodation). And with supply always higher than supply, sellers are ready to lower their selling price. “The year 2024 sees a positive dynamic emerging with a renewed real estate purchasing power for French families. The recovery in demand and the stabilization of supply that we see, after three years of growth, suggest new prospects for the real estate market.”concludes Thomas Lefebvre, scientific vice president of Se Loger/Meilleurs Agents. The number of sales of old houses should therefore increase in the coming months to reach 771,000 transactions by the end of the year.