Pretto established a study on the impact from 3rd lockdown related to estate market. He observed a slight decline of 21% in new announcements since March compared to a volume of 30% in November last year.
During the period of the second confinement, Real Estate adverts experienced a decline of 30% according to data collected by Pretto Search. This is a real estate ad aggregator which is in charge of analyzing and classifying ads from the fifteen major French ad platforms in real time. According to him, access to property visits was impossible, even prohibited for a whole month before it was possible again last fall.
But the offer on the estate market had declined well before the government reversed its decision. For the moment, we see a slowdown in real estate listings on the market. We can therefore deduce that the real estate market is affected by the third confinement, but not necessarily more alarming than last year according to the testimony of Renaud Pestre, the co-founder of Pretto.fr. We observe a drop in volume of real estate advertisements up to 21% since March 2021. Thus, the implementation of lockdowns in different departments of France had a slight impact on the real estate market in March 2021, although real estate offers have declined since then. But there can be many explanations.
During the week of 1st March, Pretto Search published 19 real estate ads. Then, on April 5, 2021, this figure decreased to 15 real estate listings. Basically, we are seeing a decline of 21% between March and April. This upheaval of estate market can have a logical explanation according to Renaud Pestre. According to him, the activity of the market experienced a period of calm during the month of February. Then, from the end of March, we observed a continuous slowdown and an considerable drop of bulk while generally, the month of March corresponds to the strong recovery of real estate sector over the course of a year.
The demand for real estate remains constant
Even if the volume of real estate advertisements is falling, the research of the real estate is always constant. Certainly, the simulations carried out on Pretto.fr demonstrate an increase in demand between March and April 2021, to the tune of 19%. According to the co-founder of Pretto, the 3rd lockdown is less restrictive compared to last year. Authorization of the visits has permitted at estate market to move and be in perpetual motion even at slow motion. In addition, rates have been revised downwards, not to mention the relaxation of borrowing conditions in order to allow buyers to carry out their acquisition project. In any case, the market of real estate loan remains favorable to the acquisition according to the declaration of Pierre Chapon, co-founder of Pretto. Financing conditions and in particular the debt ratio have favored the recovery of estate market.
Moreover, if previously, the lockdowns have seen to slow down the requests, buyers are gradually returning to the market. As a result, at the end of 2020, the results were conclusive with 1,024,000 transactions according to notaries. But still, compared to 2019, there was a 4% drop in volume. Note that 2019 was the year historically high in volume of real estate transaction. Thus, the real estate market is less impacted by this 3rd confinement, because buyers still remain active. In short, the estate market is always in perpetual motion. Despite the drop in volume of real estate advertisements, demand continues to grow.
