Real Estate. Should we be alarmed by the explosion in prices for existing properties?

After months of sluggishness in the real estate market, the return of sellers and buyers has been confirmed since the spring, resulting in a marked increase in prices for existing properties.

According to the barometer released by LPI-iad, this increase stands at 3.9% over the last three months and is confirmed in more than 70% of towns with more than 100,000 inhabitants located in France.

In comparison, price drops in old properties were observed last year at the same time in almost 80% of cities.

In detail, this price increase reached 3.3% for apartments and 4.7% for houses. This is where the price increases are the fastest and most notable.

According to industry professionals, this increase in house prices is explained by the demand for this type of property, which is pushing prices up.

According to the Agency website, this price increase is also being fueled by resellers, who are looking to position themselves for a new purchase: while the credit rates granted by banking establishments remain linked to the level of personal contribution, these resellers who already have a contribution retain a good purchasing capacity on the market and can cope with these price increases.

Having previously struggled to sell their property at a price they considered satisfactory, these resellers, who often have comfortable budgets, are back on the market.

According to the LPI-iad barometer, these price increases for old apartments show varying levels depending on the city, with +1% in Grenoble, +1% in Nice, +2.3% in Toulon, +3.2% in Montpellier and +2.3% in Lille.

Strasbourg, Lyon and Saint-Étienne are, however, among the cities where prices are falling, recording respectively -3.7%, -0.8% and -4.1%, again for old apartments.