In Corrèze, “prices are increasing in an increasingly dynamic real estate market”. At the end of February, the Limousin Interdepartmental Chamber of Notaries noted that the average sale price for old houses in the department had increased by 3.5% over a year, while that for old apartments had increased by 6.1%. This is an ongoing phenomenon: over the past five years, this increase has been 24.2% and 26% respectively.
The Brive Basin wins the award
Logically, the Brive Basin wins the award for the most dynamic sector. Last year alone, it represented 47% of old house sales in the department and 66% of old apartment sales. After strong increases in 2021, this sector recorded a price increase of 0.8%, while the Pays de Tulle recorded a 6.9% increase and the Haute Corrèze fell by -4.7%.
“Prices are increasing in Brive, but we are still in Corrèze and in a medium-sized town,” puts into perspective Me Nicolas Peyronnie, notary in Brive. »
If you are looking for rental profitability, Brive is interesting, if you are looking for added value, no. Here it is 1,500 euros per square meter for an apartment in an old building. In Nantes it is 6,000 euros.
I Nicola Peyronnie (Notary in Brive)
Logically, the Brive Basin wins the award for the most dynamic sector. Photo by Justine Bavois.
The years 2020 and 2021 have brought very high sales to the department, thanks in particular to customers who have decided to leave Paris and other major cities for Corrèze. “In 2021 we recorded 23% more transactions compared to 2020. There is tension in the market,” summarizes Me Pierre Pattier, notary in Tulle.
Thanks to the real estate boom in Corrèze, the departmental council recovers 25 million euros
A good dynamic
Christophe Berthou, Vice-Chairman of Fnaim Corrèze adds: “We still have good momentum this year despite inflation, falling purchasing power and war in Ukraine. We see customers rushing to buy before interest rates get too high. »
In the Corrèze real estate market, we are beginning to feel a shortage of properties for sale. Primarily in Brive, but also in Tulle and Ussel. “The stocks of the main residences have been emptied. At the moment we have more buyers than goods,” sums up Christophe Berthou.
“What’s going on very quickly and very well at the moment, and at more than reasonable prices, are properties without work, ‘turnkey’,” emphasizes Marie Blayez, head of the agency network of the same name in Brive, Tulle, Ussel, Égletons, Meymac and Argentat.
“The increase in material costs means that people are looking for immediately habitable housing where they do not have to suffer these increases nor the delays of the craftsmen. »
“There is a real appetite for tulle”After Brive, the city of Tulle is also affected by the price increase.
“Once you have a property that is worthwhile, it leaves immediately, without advertising,” notes Donia Ouadhi of the Human real estate agency in Tulle. Buyers respond very quickly. On Tuesday we got a house with a very good reputation for €259,000. It had just been renovated, with 3,000 square meters of land and a beautiful swimming pool. She left during the day. There we received an inquiry from a Parisian who has an educational farm and is looking for a house with two hectares of land for her animals. It has a budget of €340,000 but there is no area within 10km of Tulle. Brive becomes too expensive, there is a real appetite for tulle and the same phenomenon of shortages of goods. »
We have a strong demand for single story homes with land and cannot find any.
Donia Ouadhi (Human Real Estate)
Strong demand for second homes in Haute Corrèze
As for price levels, is there a “psychological” threshold that buyers cannot cross? “It depends on the industry. The market has changed rapidly over the past two years thanks to increased demand. In the Haute Corrèze, for example, this threshold was 200,000 euros. It is now obsolete. Second homes are also in greater demand there. Meymac, a pretty little town in Haute Corrèze, has some very nice old stone houses that are selling very well. »
Jean-Pierre Saillol (Laforêt immobilier de Brive), who offers properties in the town of Gaillarde and up to 20 km around, advises: “Today, if you want to lower the price a little, you have to approach Terrasson or stay in the towns like Allassac , Objat, Cornil or Aubazine. »
Rising interest rates are just around the corner
The forthcoming interest rate hike could put the brakes on momentum. “Any rate hike pulls the real estate market down,” observes Marie Blayez.
“At the end of the year, activity is likely to slow down, with lower prices and fewer transactions,” analyzes Jean-Pierre Saillol. Fiscal pressure could increase after the elections. Some banks have already begun to say: “We will only grant loans to couples against contributions who report an annual income of at least 50,000 euros, and we will no longer grant small loans below 50,000 euros.” »
“Since the outbreak of war in Ukraine, borrowers with modest or small down payments have faced additional difficulties in accessing credit, and the shift in demand toward higher income brackets is intensifying. »
This result from the Housing Credit Observatory is a good example of the current situation. Inflation, which stood at 8.1% in France in May, has led to an increase in mortgage rates, which have ranged between +0.4% and +0.7% since January 1st. These are currently between 1.53% and 1.85% in our region. They could rise further in July following the European Central Bank’s hike in key interest rates (to combat inflation) and continue to grow for at least a year or a year and a half, according to experts.The impending rate hike (see below) could slow momentum.
It is the humblest who toast
So the cheap money is over and anyone who has a real estate project has an interest in hurrying up their loan as cheaply as possible. Currently, the cost of the home loan is still capped, but banker approval must be obtained. And that’s where the humblest clink glasses.
“Today the average price of a new home has increased by €20,000 compared to 2019-2020 due to the rise in interest rates,” summarizes Babeau Seguin’s Anthony Pianezza. Banks are always more cautious and ask for substantial contributions of €20,000 or €30,000, while first-time buyers often have no contribution. Banks go so far as to examine the solvency of the companies that employ them. These people therefore remain rented out and pay more rent than the monthly rate of a loan. And we, we will soon only have a CSP+ clientele (the most popular socio-professional categories, editor’s note). »
In Brive (Corrèze), Parisians and Bordeaux residents buy cash in view of the shortage of goods