Why are prices high and how can this change? Should we wait before buying? Should we wait before selling?

Throughout the first half of 2018, we witnessed the extension of the market conditions encountered last year. Interest rate stability is supporting demand for limited supply and declining stocks of goods for sale. Prices rise mechanically and in an economic logic (supply and demand): + 3% in 6 months in Paris.

How to analyze this situation when you are a buyer?

If there is no speculation, this gradual increase

If there is no speculation, this gradual rise nevertheless leads to an erosion of real estate purchasing power of the French and more particularly of Parisians. A situation that could end up causing a slowdown in activity. However, it is impossible to predict a decline.

It is therefore always interesting to buy in a market where prices increase because of experience, for 20 years, in terms of the Paris market, in case of economic or social crisis, we see a slowdown in price increases rather than a real drop in prices.

Is it time to sell for the owners?

I would say that the moment is excellent to sell, the buyers are many, which allows to sell quickly and at high prices with little negotiation.

Indeed, the real estate market data may suggest that, at the end of 2018, we are at the top of the sales and transaction curve:

• Interest rates that remain low.
• Social and economic indicators in the green.

Conclusion

The moment is good to buy and sell for the simple reason that interest rates remain low, but will irretrievably rise.

This does not necessarily translate into lower prices, but rather the fact that most buyers can not obtain credit for the coveted goods …

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