Rather positive image of real estate agents, purchase or sale projects, motivations and expectations, the network of freelancers takes stock of the perception of French people on the real estate market.
Are professionals on the rise?
For their apartment or house searches, 65% of buyers and 70% of sellers have used a professional in the last 3 years.
If real estate agents sometimes suffer from a bad reputation, 61% of French people have a good image of it. 77% even declare themselves satisfied with the support of the professional in the sale of a property.
Property purchase :
Are you a first-time buyer? Discover our guide to buy your first property.
Real estate rates still top purchasing motivations
To the question: “what is the main reason that influenced your decision to buy real estate?”, respondents mainly cited:
1) Low mortgage rates (63%),
2) lower prices (47%). Note that they have been climbing in big cities for more than a year,
3) tax exemption systems (rental investment) such as the Pinel law (18%) or the zero-rate loan (16%).
French people spend less than 200,000 USD to buy their main residence
“If the budget allocated for the acquisition in particular of a principal residence varies little in one year, the recourse to a credit on the other hand tends to increase”. The average budget for the purchase of a main residence is mainly between 100,000 USD and 250,000 USD. Goods of less than 100,000 USD represent 12% of projects and those of 100,000 USD to 150,000 USD 24%.
Then come the larger envelopes between 150,000 USD and 200,000 USD (21%), from 200,000 USD to 250,000 USD (20%), from 250,000 USD to 350,000 USD (14%), from 350,000 USD to 500,000 USD (6%), more than 500,000 USD (3%).
These amounts vary by region. Thus, the proportion of goods under 200,000 USD is lower in Ile-de-France (35%) than in the East (77%). For the most expensive goods (350,000 USD and more), the IDF accounts for 18% while the East and West 2%.
86% apply for a mortgage to buy
To finance their property purchase, 86% of French people applied for a bank loan, an increase of 9 points. And they mainly contracted them over long periods: between 21 to 30 years (34%), 16 to 20 years (26%), 6 to 15 years (20%), 5 to 10 years (13%) and less 5 years (6%). Note that the reference durations are 15, 20 and 25 years. They borrow a little less than in 2016. The level of interest rates is an explanation.