Posted on Apr. 17, 2020, 11:59 a.m.Updated on Apr 17, 2020 at 3:41 p.m.
Very low rates, falling unemployment and rising purchasing power… This cocktail, on which lies the cherry of a demand for housing still sustained, could not be more favorable to the rise in property prices. But it was served before the Covid-19 crisis. Today, real estate professionals are advancing cautious forecasts. Many of them link the dynamics of the market to the resumption of transactions, itself very dependent on the terms of the deconfinement. Very few of them mention the fall in prices, knowing that the prophecy is self-fulfilling.
If most potential buyers anticipate a decline, they will delay their project, resulting in a drop in the volume of transactions prompting sellers in a hurry to offer more attractive prices … A gear from which it is difficult to get out. Hence the responsibility of commentators, even if it is very excessive to claim that a market reversal can be initiated only on the prophecies of some Cassandras. Forecasting is a very difficult art, even for the greatest experts, it seems more reasonable to consider several scenarios by looking at the fundamental determining factors for real estate prices.
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