After the euphoria of the housing market in 2021 and 2022, following the COVID confinements, what are the forecasts for 2023?

2022 review:

After the euphoria that hit the property market after the health crisis, 2022 saw a major change. While the beginning of the year was in line with 2021, driven by the desire for change of many of our fellow citizens, inflation and the war in Ukraine changed the context. The fall in purchasing power and interest rates linked to galloping inflation made it more difficult to access credit, while prices were still at historically high levels, buoyed by a decade of increases.

The sudden stop in 2022:

Until July the market was not affected by the situation, but during the summer the market reversed. As banks were no longer able to respond favourably to the demands of prospects and clients, notably because of the usury rate, the number of transactions began to fall and the time taken to sign sales to increase. The immediate consequence was a drop in demand and therefore less tension on the market and the beginning of a drop in valuations.

What to expect in 2023?

While lending rates continue to rise, which is likely to be the case until the end of the first half of the year, many industry professionals are already validating the current downward cycle. Several major estate agency networks are predicting that the downward trend will continue into 2023. Will there be a reversal or simply a logical "landing" of the market? It is impossible to say today.

Buyers who are tempted to postpone their purchase should be aware that interest rates are still rising. In this context, it is preferable to be accompanied by a professional. Wealth A7 can accompany you and advise you, contact us!

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