Real estate : is it necessary to buy a property in this moment ?
Between the health crisis and the economic crisis, real estate appears to be a safe haven, but should we rush and buy a bien ? Two real estate experts answer
Yes, for Nicolas Villar
The co-founder of the Bordeaux brokers does not see prices plummeting in the future, especially in the metropolises.
“Yes, because, for the moment, prices are not going down. Those who bought at the top of the market won’t want to sell their property.The theory is that, due to the economic crisis, there will be fewer buyers on the market tomorrow, but the metropolises with their close suburbs will remain attractive. These are territories that concentrate many jobs. Therefore, the needs in these tense areas should not weaken.Waiting will not allow for miraculous business deals, especially for those who are tenants and take the risk that interest rates will continue to rise, not to mention the fact that it is more secure for them to become homeowners in this context.As we saw during the lockdown, bankers gave credit deferrals easily, but it’s harder to get rent deferrals with a landlord.”
No, for Henry Buzy-Cazaux.
President of the Institute of Real Estate Services Management, he anticipates a decrease in the volume of transactions.
“Many people are delighted that there has been a rush in real estate agencies after the deconfinement, but it is not serious to limit ourselves to this observation, at a time when we are living through an unprecedented economic and social crisis.These are projects that have been postponed due to containment, and rather executives who are buying.With the crisis, the rise in rates and the tightening of credit conditions, 30% of those who had a project before the arrival of Covid-19 risk having to abandon it because they will no longer be able to afford it.The government would have to put in place a powerful zero-interest loan. All this will have an impact on the volume of transactions, which should fall by 20 to 30%. But also on prices.In the metropolises, prices will fall by 5% in the coming months, and in less sought-after areas, the drop could be as much as 10%. So it’s better to wait a bit, because it’s the big comeback of trading.”