New figures from ‘Orpi’, the network of estate agencies across France, indicates that the purchasing power of buyers has grown with the sale duration reducing. The network says that 50% of its apartments and 54% of its homes were sold in less than 60 days in 2015 with vendors and buyers becoming more reasonable with sales prices.
In addition to buyers “returning to reason” other factors have also been taken into account. ‘Household morale’ is one, government incentives giving people a leg up onto the market are also helping, but overall it is the improved mortgage rates and lengthened loan durations that helping the most.
“Since 2011, the decline is equivalent to a decrease in housing prices of 16%. It is three times more powerful than the fall in property prices”, stated Michel Mouillart economist specializing in real estate.
The slight increase in mortgage rates during the summer also had a strong psychological impact on people’s ability to buy.