Times are doubly difficult for those who want to buy – or sell – a home. First, the real estate situation is not buoyant. Buyers expect the market to fall in the near future, and some are emboldened to make counter-offers much lower than the posted prices, while many owners are reluctant to give up their claims.
Result: in the first half of the year, sales times increased by eight days, nationally, to eighty-eight days, according to the report carried out by the Laforêt branch network. “This increase reflects a change in the behavior of buyers, who are more cautious, who take more time to compare, do their accounts and ensure that their financing file is solid before committing”say the agents.
It is indeed very difficult to obtain a mortgage. According to the Housing Credit Observatory, loan production fell by 46.1% year-on-year in the first half of 2023. And the decline accelerated in the second quarter, to 51.2%.
“Currently, nearly one out of two real estate transactions is done in cash, without borrowing. People are drawing on the savings they have notably built up during the Covid crisis, while retirees who were already owners are taking advantage of the proceeds of the sale to buy a smaller home for their old age.observes Maël Barnier, spokesperson for Meilleurtaux.
Selling your home before buying another is, in any case, a more comfortable solution. But the sequence of selling and then buying does not always go as planned. “You have to count on delays: the buyer of the property sold who takes longer to obtain his loan, administrative procedures that drag on… You may find yourself unable to acquire the new home, because you have not yet sold the old one”, notes Samuel Massieu, head of banking partnerships at the broker Cafpi. Not to mention that a transfer, a divorce, the arrival of a child can precipitate the departure of a dwelling that one occupies.
Watchful banks
To avoid any stress, the bridge loan allows the release of funds to buy a new property, even though the initial property has not yet been sold. This credit is granted for a period of twelve months, generally renewable for an equivalent period. The seller therefore has two years to sell his property. The amount of the bridging loan depends on the value of the property you want to leave.
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