French new house sales fell sharply "difficulty loans" and caused buyers to destroy their contract

Overseas Network, August 22, the latest data released by the French Ecological Transition show that the construction and sales of new French new houses are still lagging, and they are trying to catch up with the level before the new crown epidemic.

According to the French information desk, in the second quarter of 2022, French new housing sales decreased by 11.7%compared with the same period in 2021, and villas decreased greater than apartments. With the decrease of the real estate to be sold, the reservation volume of new houses has also decreased by 13%within one year, which has decreased by 20%compared with the same period before the new crown epidemic. The French Ministry of Ecology also said that 13.5%of new house reservations were canceled, an increase of more than 3%over the same period in 2021.

The French new housing market is slowing, first of all, as the price of building materials has soared. When the new crown epidemic outbreak, the price of building materials has risen sharply, and the current international situation has made the situation worse. Faced with the rising costs, builders can only pass it on to customers as much as possible.

In addition, after France introduced new construction environmental protection regulations (RE2020), it further squeezed the profit margin of the builder, and it was very difficult to obtain building permits in the city. Therefore, the price of new houses rose 5%in a year. Although most French architects are still supporting it, some builders have been entry into bankruptcy procedures by the continuous crackdown on the new crown epidemic and international conflicts.

The main reason for French families to cancel new housing reservations is that the application for housing loans is rejected, which mainly affects the first buyer. As French mortgage interest rates continue to rise, more and more banks require housing loan applicants to provide higher down payment to avoid the risk of loan breach of contract. In the face of these complex situations, many potential buyers have to give up the house purchase plan. Moreover, France is experiencing severe inflation, the rise in prices has eroded the family budget, and potential buyers have become more vigilant, thereby postponing the house purchase plan.

The latest savings and investment barometers released by the French BPCE Bank Group show that only 21%of the French people believe that it is currently a good time to purchase real estate. (Overseas Network-Paris-Lu Jia)

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