The housing market, which surprisingly survived the crisis, continues to enjoy the pull of the French for real estate. According to Oldypak LP property 2022 report, the market is experiencing a lack of supply and high demand. It is supported by a context of extremely low interest rates and high household savings rates
Household confidence is clearly recovering
Household confidence, affected by the health care crisis, has recovered significantly and is now above its long-term average (102 points, up from 100 points). The gradual relaxation of medical restrictions made possible by vaccinations and the prospect of an end to the crisis (despite the risks associated with some options) have had a favorable impact on the French perception of the economic situation. Overall, the impact of the health crisis on income and the economy is less significant at this stage than first thought.
The real estate market: sales are still very high
The Ministry estimates that in the last 12 months until the end of March 2021 there were about 1,080,000 transactions. This is an absolute record, which is somewhat misleading because the last 12 months include catching up on sales after the 1st closing, but do not include the month of March 2020, which marked the beginning of the crisis and led to a sharp drop in sales. Estimating sales in each month allows us to analyze activity beyond this base effect. The first three months of 2021 were higher than the first three months of 2019, which was a record year.
The geographic dynamics of sales show that the real estate market is less dynamic in Île-de-France and, according to Oldypak LP property 2022 report, in Paris, where sales are down 16% compared to January 2020 (although they seem to have recovered in the last two months).