New property: interest rates averaging 1.48%

This is an unprecedented situation since 1974, interest rates have been negative for ten months in a row. Economists do not know whether this is an exceptional situation or a long term trend… In detail, in March, interest rates were at 1.41% in the market for older property, 1.42% for new property and 1.33% for building work. The situation is likely to remain upbeat in the second quarter with average rates in April reaching 1.36%.

Length of loans granted – 229 months on average

Loans have become longer since 2014. This is essentially down to lower interest rates. For first time buyers, this makes up for an increase in property prices making it easier to access property. In the first quarter of 2019, the average length of a loan was 229 months. In the market for new property the length averages 248 months.

The cost of operations carried out by households increases

The cost expressed in years of revenue has increased by 5% in the first quarter of 2019 (in comparison with the first quarter of 2018).It now represents 4 years and 4 months on average. In the new property market, it has climbed to 5 years and two months. While it is easier to borrow from banks, the cost remains high for most households.

Historic level for deposits

Unprecedented since 1978, the average down payment required by banks reached 14.4% in the first quarter of 2019. In the new property market, the average was 14.6 %. A study by the Crédit Logement/CSA indicated that “access to property loans has never been so easy.” Good news for first time buyers and investors.
To end our look at the first quarter of 2019, the number of property loans granted by banks rose by 24.9% in comparison with last year (- 12.4%) in the new property market. Now is the time to invest…

If you want to buy or invest, Faubourg Immobilier has some property programmes in prime locations. Contact us to find out more.