Mortgage rates rise in France

The average mortgage rate in France has increased from 3.5% to 3.8% in recent months, reducing the amount buyers can borrow. For a 1,000 euro monthly payment over 20 years, the loan amount has dropped by 2.1%, which affects the overall purchasing power of homebuyers.

Buyers negotiate lower prices more often

Real estate agency network Laforêt reports that about 9 out of 10 buyers are now offering to lower the purchase price, a significant increase from 8 out of 10 at the start of the year. The average negotiated discount has also risen to 4.8% of the initial listing price, compared to 4.5% the previous year.

Market alignment begins to take effect

Since June, the average negotiation rate has slightly decreased from over 5% to 4.8%, as sellers begin to lower their listed prices to match buyer expectations. This shift is described as a "beginning of market alignment," but it still needs further confirmation.

Real estate prices decline nationwide

According to the French national statistics office Insee, real estate prices in France fell by 0.8% in the second quarter, with a more pronounced decline for houses. Listed prices have also decreased, with a 1.5% drop in the average price per square meter over the past year.

Regional price trends vary widely

The real estate market in France is showing a "two-speed" pattern, with urban apartment prices decreasing while peri-urban areas see some recovery. Some cities like Cherbourg-en-Cotentin have experienced a 14% increase in apartment prices, while others such as Anglet have seen a 18% drop in prices for similar properties.