In the old sector, the LPI barometer for July highlights a considerable price difference between the 3 most expensive cities (Levallois-Perret, Neuilly-sur-Seine and Paris) and the 3 least expensive cities (Carcassonne, Chalon- sur-Sane and Chteauroux).
Mortgage rates are increasing month after month, but what about prices? If loans are harder to obtain, are sales fewer and less fluid with an effect on the amount of the transaction? No, according to the results of the LPI real estate price barometer for July 2023, published at the end of August. If the prices signed are down – the fall is 0.3% in July, after a small increase of 0.2% in June – the prices posted by sellers are still on the rise (+0.7% in July ), according to experts. Clearly, the prices of the old resist despite a sluggish market.
The drop in prices of old housing is intensifying and becoming widespread in Ile de France. On the other hand, prices continued to rise, often rapidly, in most provincial towns. And during the last three months, the decline in sales has intensified, making this month of July the worst in the last 20 years, explains Michel Mouillart, professor of economics and spokesperson for the LPI barometer.
Considerable differences depending on the city
We also note in the results of the barometer, a considerable price difference between the 3 most expensive cities (Levallois-Perret, Neuilly-sur-Seine and Paris) and the 3 least expensive cities (Carcassonne, Chalon-sur-Sane and Chteauroux). The difference in the price per m of old apartments is 1 to 8. The differences appear even more pronounced when examining the rate of change in prices, drawing a France of several speeds.
As for older apartments, the decline continues, but at different rates. In Ile-de-France, it concerns 85% of cities, at an average rate of 2.6% over one year. On the other hand, the decline concerns only 30% of the towns in the Provinces, at an average rate of 4.1%. It remains moderate in certain cities such as Bordeaux or Rennes and is increasing in others such as Lyon, Nantes or Tours.
In the end, the price increases concern 70% of provincial towns. Prices are also increasing by at least 8% in 25% of cities, for an average increase of more than 11%.