a climate of growing anxiety in the face of adversity
The real estate sector is currently going through a serious crisis. It is marked by a decrease in purchasing power, a rise in credit rates, borrowing difficulties and new obligations linked to the energy transition. In this context, uncertainty reigns and real estate agents are worried. How do they perceive this situation? What are their perspectives on the real estate market and the behavior of buyers and sellers? Let’s discover the feeling of real estate agents, as concerned as they are determined, in this article.
Negative signals fuel concerns among real estate agents
Opinion System is a partner of more than 10,000 real estate agencies across the country. The specialist in monitoring and disseminating customer reviews has carried out an extensive survey of its members to gauge their state of mind in this unique context. The study included both member agencies of national networks and independents. It should be noted that it thus offers an overall overview of the situation on the French real estate market.
In 2022, old real estate celebrated a victory by once again crossing the symbolic bar of one million annual transactions. But since then, the situation has evolved much less favourably. Thus, several indicators are now in the red.
Admittedly, it is still premature to speak of a market collapse. However, these negative signals generate a certain pessimism among real estate agents. Concerns are growing, whether for:
- access for first-time buyers to property (87%),
- the conditions for access to real estate credit (80%),
- the stability of real estate prices (57%),
- the economic outlook for the sector (55%).
The confidence of market players is crumbling
In general, the confidence of buyers and sellers is a concern for 59% and 55% of professionals in the real estate sector respectively. Moreover, these fears are confirmed on the ground. Since nearly 89% of real estate agents have noted the growing difficulties of buyers in obtaining credit.
An alarming finding also emerges: nearly 6 out of 10 real estate agents report an increase in breaches of sales agreement. And, that, for lack of agreement on the part of the banks. At the same time, 63% of professionals note the efforts made by buyers to increase their capital contribution.
Uncertain prospects and challenges for real estate agents
The situation in the real estate market is marked by a climate of growing anxiety and pessimism. And, this on the side of real estate agents as well as buyers and sellers.
Indeed, the challenges related to financial accessibility, obtaining credit and price stability require particular attention. It is therefore crucial to find solutions to support first-time buyers, facilitate access to credit and restore the confidence of players in the sector.
The fight against energy sieves: laudable measures, but failing execution
The first measures of the Climate Law come into force
Since August 2022, the ban on rent increases has been in place. And, now, since 2023, the rental of energy strainers is also prohibited. Remember that these measures are aimed at energy-intensive housing. However, France has 5.2 million main residences classified in energy categories F or G. That is 17.3% of the residential real estate stock.
Measures welcomed by real estate agents, despite concerns over their implementation
Overall, a large majority of real estate agents (85%) regard these measures as a positive initiative. Indeed, the objective of reducing the environmental impact of housing is seen as necessary and beneficial.
However, 80% of real estate agents point out that the methods of carrying out these measures are problematic. Their concerns are in line with those expressed by many professionals in the energy transition sector. Indeed, they point the finger:
- the lack of household support,
- the reduction of certain financial aid,
- the shortage of qualified professionals to carry out the mandatory diagnoses and carry out the necessary work.
An insufficiently prepared energy renovation sector
The reality is that the energy renovation sector does not seem to be ready to face such a rapid energy transition. Moreover, real estate agents are on the front line of this problem. The latter note the difficulties encountered by both owners and tenants in complying with the new energy requirements.
In this regard, the lack of qualified professionals to carry out energy diagnostics and carry out the necessary work is a major obstacle. In addition, the decrease in financial incentives further complicates the implementation of these energy renovations.
Persistent Challenges in the Real Estate Market: Buyers and Sellers Seeking Balance
Buyers try to regain control
Despite increasingly demanding market conditions, real estate buyers are exercising caution. Only 31% of professionals note an acceleration of purchasing projects.
Faced with the rise in energy prices and the new constraints imposed by the Climate Law, more than a third of buyers (37%) exclude energy-intensive goods from their selection. In this, the transition to more energy-efficient housing is a criterion increasingly studied when buying real estate.
Sellers camp on their positions
For their part, sellers seem to be resisting the reality of the market and are maintaining high selling prices. According to 8 out of 10 real estate agents, sellers have not adjusted their prices to keep up with changes in the market.
Despite the advice of professionals, they prefer to maintain prices above the estimate. This resistance from sellers creates an imbalance between supply and demand, complicating real estate transactions.
New energy renovation obligations influence negotiations
A few months after the entry into force of the new energy renovation obligations, nearly half of professionals (47%) note their use as a bargaining lever.
However, despite these incentives, 39% of real estate agents notice a gradual acceleration in the sale of energy-inefficient homes. This situation highlights the challenges facing the energy renovation sector.
Prolonged transaction times and a shortage of properties to sell or rent
The challenges encountered in the real estate market translate into longer transaction times for 86% of professionals. Moreover, this situation is aggravated by the difficulties in identifying properties for sale for 70% of real estate agents. As well as properties for rent for 57% of them.
Indeed, the scarcity of offers and the imbalances between the expectations of buyers and the positions of sellers complicate the realization of real estate transactions. Despite these persistent challenges, the real estate market continues to function. However, it requires actors to adapt to the new constraints.
Real estate agents: essential players in a changing context
This Opinion System study highlights the crucial role of the real estate agent in supporting individuals in the face of new market realities. While it’s understandable that a seller wants the best price and a buyer is looking for a bargain. Estate agents must undertake educational work. Since they have to consider things like the economic situation and the rise of green value in real estate.