There is always the question of whether the time is right to become a homeowner. When real estate prices are interesting, it is rather rare that it is the same for loans. But in this period, the combination of the two makes it possible to achieve good real estate transactions. By buying too early, however, you can miss out on a bigger drop in prices. That’s why it’s good to learn about real estate forecasts and credit rates 2016 before getting started.
Lower and lower borrowing rates
The trend of real estate prices this year depends on the evolution of the credit rates 2016: the more one borrows at low rates, and the more one can buy, and inverse. Currently, we see that the 2016 credit rates are at a low level and this will continue in 2016. But when the loans fall, it is necessarily linked by a rise, and therefore an increase in property prices.
Today, it is possible to obtain a mortgage proposal less than 2%, and below 2.80% with guarantees included. So, if you subscribed a few years ago a credit that you consider too expensive, you can think about having a credit redemption.
More first-time buyers
If first-time buyers had previously struggled to borrow, this is no longer the case. In fact, households buying for the first time want more and more to benefit from advantageous tax measures, and manage to circumvent the mistrust of banks by making a loan in the long term. And even the modest households, earning less than 3,600 euros a month, manage to buy. But the question of employment and the ability to keep one’s job, or to find one without difficulty, remains essential.
However, we must not forget the difficulty to be convincing with the bank when we have only low income. And even when one earns a good living, the lending institution takes into account so many elements that refusal cases are frequent, without sometimes understanding what motivates this decision. The medical questionnaire for obtaining loan insurance is one of the elements that can slow down the accessibility of the loan.
Good reasons to hope
With stable borrowing rates and falling real estate prices, the market will remain favorable to buyers! But everything depends on the location of the property: prices have dropped by only 1% in the big cities but, the further away from the capital, the more they are in free fall.
Forecast on the nine
It was found that the Duflot law did a lot of damage because sales had dropped considerably. But the Pinel law came to correct the flaws of the text of law and thus revived the market, even if we are far from the time Scellier. We can thus see a resumption of off-plan sales for T2 or T3, ideal housing for young single executives or for couples first-time buyers wanting to buy for rent.
Paris: the buyers come back
In the capital, the market is on the rise and the good opportunities seem to be over because the number of buyers is increasing despite very high prices. There are more buyers than sellers. And there is more demand than supply, which drives up prices.
This trend seems to continue in this direction: in 2016, prices per square meter in Paris continue to rise in all neighborhoods. Note that the purchasing power of the inhabitants of the city of light is doing well.
The solution to reverse the trend: there are two buyers for a seller, according to real estate professionals. And that is clearly not the case right now.
Forecast 2016 and 2017
According to some real estate experts, the market should really revive in 2017. After a not really justified increase of more than 10%, followed by a decline of 5% over 2 years, we are moving towards rebalancing. But everything will depend on the economic situation … The fall in unemployment would be a lever.
This year 2016 should be favorable for buyers to make a real estate purchase or also to make a purchase of credit and save money on their credits taken a few years ago.