In the second quarter of 2026, home prices in France fell by 0.8% compared to the same period a year earlier, according to data from notaries and the French National Institute of Statistics and Economic Studies (Insee). This decline was mainly driven by single-family homes, whose prices dropped by 1.3% over the same period. In contrast, apartment prices remained nearly stable, falling by just 0.1%. The trend reflects a broader shift in the housing market, influenced by rising mortgage interest rates over the past year. These rates have increased from an average of 3.20% in August 2025 to 3.50% for 20-year loans by September 2026, making home purchases more expensive and affecting buyers' budgets. As a result, home prices have become a point of negotiation more frequently. According to real estate firm Foncia, negotiations during home purchases have become "almost systematic" in recent months. Despite this, the number of home transactions over the past year has remained stable. In Île-de-France, the region surrounding Paris, single-family homes saw a steeper decline of 1.5%, while apartment prices rose slightly by 0.3%. In other regions, prices also fell by about 1% annually, with single-family homes again seeing a more significant drop than apartments. Over the past twelve months, from July 2025 to June 2026, 958,000 existing homes were sold in France, a number similar to that recorded in the previous year. This marks a recovery in the housing market, which had seen a steady decline since the end of April 2022. The volume of transactions stabilized between October 2024 and December 2025. However, the National Federation of Real Estate (Fnaim) estimated that sales in 2026 would reach between 900,000 and 920,000 properties, a 5% decrease compared to 2025. The federation expects the market to remain "significantly slowed" at least through 2027, largely due to the continued rise in mortgage interest rates. The upcoming decision by the European Central Bank on whether to raise its key interest rates, scheduled for September 10, will be crucial for the housing sector. This decision could influence future mortgage rates and, in turn, affect buyer behavior and market dynamics. The outcome could determine whether the housing market stabilizes or continues to face challenges in the coming months.