The real estate crisis takes its first victims (in France)
A report by Emmanuel Charlot and Cyril Thepenier
After the United States, England and Spain, it is up to France to be affected by the real estate crisis: in a context of international financial crisis, with the decline in purchasing power, the reluctance of banks to grant mortgages and rising rates, the number of sales of apartments and houses in the new has fallen by 34% compared to last year. In some regions, the drop even exceeds 50% in Aquitaine, Lorraine, Midi-Pyrénées, Burgundy and Limousin.
And for the first time in 15 years, prices are starting to drop. Suddenly, real estate agents and developers find themselves with a housing stock at a record level: 110 in new buildings, of which 000 have already been completed. The stock prices of developers Kaufman and Broad, Nexity and New Builders fell last year by 35%, 000% and 40%. Social plans are announced in the sector ...
The only solutions for promoters, sell off and sometimes even offer gifts. For the purchase of a property, more and more of them are offering notary fees or an equipped kitchen, and sometimes a new car as a gift. On the side of real estate agents, it is the hecatomb. Layoffs are increasing and more than fifty agencies have closed each month for a year. But the first victims are above all ordinary French people. Homeowners, who thought they were getting a good deal a few months ago by investing in real estate, increasingly find themselves with depreciated apartments, which they can no longer resell. Buyers stuck by a bridging loan to repay at the worst time. Between two homes, with the risk of losing everything.
I like the notion of "sell off" among real estate builders ... it rarely exceeds 5% ... while they are marching like big pigs!
Fortunately SS like Super Sarko is there to help them with public funds ...