While the Ain Chamber of Notaries has just published its annual economic report (July 2021-June 2022), Maître Annabel Montagnon, its president, traces the developments in the real estate market. “Since June 2020, the post-Covid period, we have seen quite sustained activity in the real estate sector, with prices that have skyrocketed” recalls, in the preamble Maître Montagnon.
In Ain, the old is popular
Also this year there is an increase in median prices, “around 10%, mainly on the old”. The average price of new homes is decreasing, “except on Gex, which registered a + 15%, but probably for a particular program”.
Building land prices fell slightly by 1%. For its part, the number of transactions has increased significantly (+ 15%) in the last twelve months, “while we already had large volumes last year, on all types of goods”.
Rising property prices: Haute-Bresse, Bugey south and the Oyonnax sector in the forefront
The whole department benefits from this “Covid” effect. “Perhaps it is in the most remote areas that property prices have risen the most. This is the case in Haute-Bresse, where I am.”
Among the most affected areas also Bugey Sud (+ 17% for old houses compared to last year) and the Oyonnax sector (+ 16% for old apartments compared to last year). Bourg-en-Bresse is in the departmental average. “The Burgian crown remains more dynamic. A new fact, we find that in rather disadvantaged neighborhoods, such as the Vennes district, prices have increased by 15%. Is it for lack of goods?”asks Mayor Montagnon.
Real estate in Ain: slowdown likely
In this September, in the absence of figures, Annabel Montagnon does not notice any perceptible slowdown. “But everyone agrees that the market, nationwide, will experience a small drop in volumes which could lead to a slowdown in prices”, rebounds the president of the Ain Chamber of Notaries.
In question, the increase in borrowing rates. “The overall effective rates now reach or even exceed the usury rate, which is 2.60% for loans over 20 years.” Many banking practices are therefore blocked today. “We expect the next usury rate published quarterly, in October.”
First-time buyers penalized by rising interest rates?
Another unfavorable factor, “Banking institutions have submitted many applications and have reached their quota, which should also slow down new requests”. A context that should strongly penalize new buyers. “For several years we have witnessed a growing personal contribution, with the financial help of the family”, complete the notary.
In the end, “the household confidence indicator is falling sharply, reaching the levels of 2013 and 2008, periods in which real estate activity was slowed down”, Me Montagnon points out. The end of 2022 could therefore be calmer …