Real Estate: 2010 years of the recovery?

The end of the year 2008 was marked by a stop focused on real estate market. What about a little over a year after the island of Ré, in a relatively untouched by the housing crisis? Response elements with professionals rétais.

On the housing market rétais, as everywhere in France, things have changed over the last twelve months. In 2006, it is very clear who were the sellers market. The very strong price growth accompanied the increase in the domestic market. The island of Ré becoming an upmarket destination, the property prices have increased above average. But the following year, the number of properties for sale had increased and houses overestimated already beginning to sell less well.

Then, the euphoria has left very much in September 2008. "There was a very difficult six months during the last quarter 2008 and first quarter of 2009, confirms Christopher Cushion (Hurtaud agency, Sainte-Marie-de-Ré). There was virtually no trade in this island period, the market was frozen. Then we felt a slight recovery last spring, but uncertain because the funding does not follow. " In other words, banks remained wary and buyers who needed to sell a property to buy could not sell.

Behavior change

The storm now appears to move away from the real estate market rétais. The territory has been less affected than other French regions. But in recent months have left traces in behavior. "Now, owners want vendors who sell really become realistic, says Chrystelle Longeville Agency Port Orpi La Flotte. In 2007, the year of euphoria, the sellers wanted to sell their property 10 to 15% in - above the market, which was already very high. " But when such property has no takers, buyers may be more difficult. "When a good is its price, it sells immediately, continues Chrystelle Longeville. But a term 'used, taken in 2007, and overvalued can now be negotiated up to 30 % down. "The vendors have had difficulty receiving this crisis and believed that the island of Re was not concerned. In fact, they always said here, the market would rise forever," said Christophe cushion.

A brake, but no balances

Do not still believe that the housing market rétais is on promotion! "Some buyers have attempted to negotiate property with strong negotiation, including goods at fair prices," says Christophe cushion. Some buyers were opportunistic and literally several vendors could not wait. There is not a radical decline, but a brake or a settlement. "
Even feeling the side of Olivier Renault, Agency Port Orpi to Fleet: "We felt a recovery since the month of May It was not a crisis but a brake.

Still, as now, the buyers take their time and are increasingly demanding. "The market has moved from a state with a speculative investment market long term, says Olivier Renault. The euphoria of price growth has stabilized."

So what will happen in the coming months? Christophe Cushion is optimistic: "we felt it was an air pocket and that it perhaps did not last. Ré Island is very attractive and we have a sustained activity since September. We therefore more serene. " Chrystelle Longeville also believes that the island of Ré still seduce buyers "including people with significant wealth. But do not believe they will buy at any price!".

The year 2010 may be the year of recovery, but realism is in order. The property "in juice" overvalued and will be difficult to sell, while the products remain desired character. What was already true before, but is even more now.

The number of transactions down
In 2007, there were approximately 850 real estate transactions on the island of Ré. In 2008, the volume of sales declined, with about 650 transactions. For 2009, the number of transactions should reach around 600 or less.
The bulk of the market relates to property whose price does not exceed 450 000. The band between 450 000 and 800 includes 000 fewer goods. And when it exceeds 800 000 euros, we literally changing market. Property exception s'appréhendent indeed not as holiday homes, but rather as investments. There is also a category of goods covered by a price of convenience (seaview, sea access, exceptional property, etc..) Whose rates can exceed one million and a half euros. But again, the buyers are acting more as asset managers.
Finally, on land, demand increases since the beginning of 2009 for the achievements of primary residences and prices are not falling. Before 2007, land took 10 to 15% per year. Today, they are still expensive, but they increase more slowly, but became rare.