Discover the latest trends in France’s real estate market as second-hand home prices decline for the second consecutive year, down 2.1% in Q4.
In the realm of French real estate, a rather disconcerting trend has emerged: the sale prices of second-hand homes have once again taken a nosedive in 2024. According to the latest data from INSEE, this marks the second consecutive year of decline, with a notable decrease of 2.1% recorded in the fourth quarter compared to the same period the previous year.
The second-hand property market, it seems, is experiencing a prolonged bout of malaise, as evidenced by the provisional figures released by the Notaires-INSEE index on February 27. These figures suggest a “slower pace” of annual decline in second-hand housing prices towards the end of last year, a slight silver lining amidst the otherwise gloomy landscape. To put this in perspective, the year-on-year declines were more pronounced in earlier quarters: 3.9% in Q3, 4.9% in Q2, and a staggering 5.2% in Q1. Alas, this marks the sixth consecutive quarter of price declines when viewed through the lens of year-on-year comparisons.
The root of this downturn can be traced back to the sharp rise in interest rates that commenced at the end of 2022, effectively putting the brakes on the purchasing ambitions of numerous French households. This financial tightening has cast a pall over all segments of the housing market in France—new, old, and rental properties alike. Interestingly, when juxtaposed with the third quarter, the prices of second-hand homes exhibited a near-stability, with a marginal increase of 0.1% in the last quarter of 2024.
Moreover, the number of transactions has also taken a hit, plummeting by 9% compared to the previous year, culminating in a total of 792,000 sales throughout 2024. It appears that the French real estate market is navigating through turbulent waters, leaving many to ponder the implications of these trends on the broader economic landscape.
