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what can we expect for the next few months?

Most real estate agencies see borrowing rates rising, to varying degrees. Last year, prices per square meter in the old continued to increase by 3.7% over one year according to the Laforêt network, it is 6% according to Orpi and more than 8% according to Fnaim. And the whole of France is affected even if the Great West is the region where the increase observed is the strongest with, for example, according to Orpi, more than 15% increase in Brittany and nearly 11% in Pays de la Loire.

Since the confinements, the French are looking to move, to change region, and apartments with a balcony and houses with gardens, with an exterior, are still popular but with the surge in fuel prices, we see some changes: buyers are beginning to be reluctant to stray too far from work or train stations because properties on the outskirts often require the purchase of an additional car. In fact, the city centers are regaining a little interest, whereas after the confinements, people were ready to move away from them and to move away from it.

It is the brokers, those who negotiate the terms of a loan, who notice it: we can expect a sharp rise in rates this year. Quite simply because the banks pass on to their customers the rise in rates that they themselves suffer, when they finance themselves.

Last year, when you had a good file, you could easily obtain, for a loan over 20 years, rates excluding insurance, around 1%, or even below. There, we are already rather around 1.3%. Today, you really have to have an excellent record to hope to get less than 1%.

The banks are also stricter than before because they apply the new rules: you cannot exceed 35% debt to income, insurance included. In other words, you really have to earn three times more than the monthly payment of your credit. And then, the personal contribution required is often higher than before. As a result, it is more complicated for buyers to have the sufficient budget and it slows down sales and transactions.

The international context also weighs: the agencies note that, since the beginning of the war in Ukraine, there are fewer real estate projects. The French are more cautious, more careful before committing to a long-term purchase

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