The new MeilleurAgents barometer reveals the cities where prices are rising and falling with the health crisis. Price stabilization has been underway since the end of the summer, in particular in Toulouse.
What is the real estate market like one year after the start of the crisis? The latest national barometer of real estate prices from the MeilleurAgents site shows a “marked slowdown” in prices since September 2020. The phenomenon affects large cities while rural areas seem spared for the moment.
In Toulouse, real estate prices increased by 2.9% between March 2020 and September 2020. Between September 2020 and March 2021, they show a decline of 2.2%. This is the biggest drop after Paris. Montpellier has posted a decline of 0.6% and Bordeaux 1.1% since the end of the summer. The price per m² in Toulouse on March 1, 2021 is 3,456 euros compared to 3,129 euros in Montpellier and 4,615 euros in Bordeaux. In Paris, stone still exceeds 10,000 euros at 10,318 euros per m².
This drop in demand is explained by “the mistrust of households in the face of the uncertainty of the coming months. The end of the partial activity mechanisms could lead to a rapid rise in unemployment”, explains Thomas Lefebvre of Best Agents.
The year had started off on a high, however, since the real estate tension index (ITI) showed that in Toulouse there were 23% more buyers than sellers in March 2020 against 11% in March 2021.
How will the next few months go now? If in the spring, the real estate market usually regains dynamism, it should be “a little more gloomy” this year, predicts MeilleurAgents. Real estate will benefit from the still very low lending rates (less than 1% on average over 15 years according to the Banque de France) and the increase in household savings which could increase their personal contribution.