Significant Decline In New Home Sales

Were professionals right to fear a collapse of the real estate market after the decisions announced by the government in its latest finance law?

If real estate agents could legitimately fear that the restrictive measures concerning access to the zero-rate loan 2012 make it difficult to buy a principal residence for first-time buyers, the developers could benefit from an interesting transition before the announced end of the Scellier device for December 2012.

Real estate rates have just matched their record highs of two years ago! Better: for good records and individuals who play the competition, banks break the rates of their home loans. We even see loans at less than 1% over twenty years!

 

A bad year 2011 for new real estate

A bad year 2011 for new real estate

With a decline of more than 10%, 2011 will remain a bad vintage for real estate development and for the new construction market. It must be said that the bad news that has accumulated has ended to undermine a market already in great difficulty.

First, the rise in mortgage rates initiated in December 2010, but also the sharpening of banks that are now more demanding of first-time buyers and borrowers who do not have a minimum capital contribution staff.

Finally, the growing concern over the unfavorable international economic situation has undoubtedly delayed the decision of many households waiting to see how the current financial crisis will be solved.

 

Decrease in housing starts in January 2012

Decrease in housing starts in January 2012

2012 is off to a bad start when we look at the number of housing starts in January, which is down about 30% from December. The end of 2011 was however marked by the fact that many investors had anticipated their purchase to benefit from the full rate of tax exemption under the Scellier Act (down in January and then removed in December 2012).

Do real estate developers then anticipate a fall in future demand, when the market will not be supported by any tax system? Still, the figures announced do not augur a serene future for real estate.

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