Some say that the market is conducive to real estate sales. For more than a year, the real estate investment market has never been better. However, many are slowing down with both feet in the face of the idea of investing in stone… Lest the market collapse sharply, and be a bad bet. An echo in direct relation to the economic situation, a crisis caused by the pandemic. Others, on the contrary, sell as quickly as possible, to get the best possible price. Even if the market is doing well, at an excellent level of stability, the cautiousness is felt. However, real estate sales are in good shape, and the demand is present.
Lockdown, a direct impact on real estate sales
If the year 2020 has taught us anything, it is the desire for change after a period marked by lockdowns. Indeed, after many months of restrictions, to stay at home in a private, but also professional setting… The French want renewal and evolution. This is very timely, as real estate is one of the sectors to do best.
Before the pandemic, especially on the outskirts of major cities such as Bordeaux, or even Paris… Living as close as possible to the city center was a need, as if to stay connected to outdoor life. And this, even if it means reducing the surface area of the dwelling, to remain within its budget. The rental market was also particularly dynamic, driven by students asking for a roof to study more serenely.
But here it is: the pandemic has arrived, upsetting all habits and desires. Students no longer need their studio, due to a lack of face-to-face classes. Moreover, they cannot earn income, as their contracts are suspended for lack of activity. Many sectors are coming to an almost total standstill… But at the same time, real estate is going to the beautiful fixed.
Seasonal rentals and rental investment are experiencing a net decline. The closure of borders to foreign tourism is not to blame for this. Despite the mobilization of French tourists, this is not enough. They go less far, for less time… And don’t buy anymore to rent afterwards. They prefer to buy better, for their main residence. A residence that also changes its location, moving away from the heart of the metropolises, yet so appreciated.
The question is therefore: where are the majority of real estate sales made when buyers leave the metropolises? Towards greener spaces, out of the big cities. Towards so-called medium-sized cities.
Real estate sales that adapt to the current context
Turning to medium-sized cities at the expense of large metropolises is the new emerging trend for 2020 and 2021. They are quieter, cheaper places to live, and especially with a more extensive and substantial offer. If metropolitans are eccentric, this is mainly due to the climate created by the lockdowns. Whole weeks at home, where teleworking and personal life mingle in one and the same space.
City dwellers are therefore leaving less spacious accommodations in search of a larger place to live, with greenery. A home in which it will be easier to distinguish between work and family life. The sale of real estate and the purchase coincide most of the time with a change of life on the part of households. Most often, during a marriage, birth or professional transfer. The change in working conditions is also part of the equation.
In addition, current trends show that most real estate sales take place during the spring. Indeed, it allows households to move during the summer, before the start of the school year in September. This allows children to return to school in good conditions. It is also a pleasant time to see the neighborhood, meet its neighborhood, the climate being more favorable.
Thus, real estate sales continue, even reaching record highs. The same is true in the heart of major cities. Attractive rates offered by banks, an increase in the debt ratio to encourage borrowing… The real estate and investment market is green. And the support from real estate agencies is also evolving, a close relationship despite the pandemic. All this for a single objective: to continue to sustain a very promising part of the national economy.
A transformation of the real estate business that is becoming permanent
Another observation of the news related to COVID-19 on the real estate bubble, is also on the side of professionals. Real estate agencies were quickly able to take the fold of the new restrictions, and the closure of agencies to go remotely. It is impossible to meet your customers, face-to-face visits are also heavily impacted. However, the entire sector is evolving, relying on emerging technologies: Digital.
Thus, real estate sales in agencies continue, but entirely online. The visits adapt, especially with the implementation of virtual tours, or videos commented by the real estate agent himself. This allows potential buyers not to have to travel. This saves a considerable amount of time, while limiting travel.
What are the best times of the year to sell your property? Welmo published on June 1, 2021