Real estate market

The real estate market is the market Private (though having generally recourse to intermediaries) where the purchasers and salesmen intervene, and also owners and tenants of real goods. The real sales are done primarily private, but a small portion is done in Enchère S (in the case of seized, or of goods sold within the framework of conflict successions).

Market segments

One generally speaks about real estate markets (in the plural) or about a specific market, because the market of the buildings segments in multiple under-markets, having each one their characteristics. These under-markets correspond

to the geographical locations (country, cities, districts, rural areas)
with the types of good (houses, apartments, offices, buildings industrial or commercial, grounds…).
with the quality of the good in question: bottom-of-the-range, standard, of luxury, etc

There exists, between the under-markets of the same area, strong interdependences.

Characteristics clean with each good

Play in the negociability of a real estate the characteristics intrinsic of this good (accessibility and of installation, comfort, insulation, exposure, esthetics, outdatedness, loads and forced, quite occupied or freely livable), even of the sentimental elements (family estates).

Activity

The amounts concerned are considerable, higher than those of the financial markets or raw materials. In addition the real inheritance represents a big part of the public and private assets.

Trend of prices

See also: real Evaluation

The comparing unit of the prices of the real estate is generally the price with the square meter (or with the square foot, in certain Anglo-Saxon countries). For the properties with incomes, one makes use of multiples of the income and other measurements connected (up-dating rate). Lastly, of the extremely variable comparing units are also used according to the type of property (cubic meter, meter of frontage, price to the room or the apartment, etc).

In addition to fluctuating in time, the prices can strongly vary according to the nature of the good. They are bound, for example, with phenomena of scarcity, economic conjuncture and sometimes policy, and with the evolution of interest rates of the real estate credits. Speculative dimension of the real estate market is always an element to be taken into account. It should in addition be admitted that the prices also depend on variables “ irrationnelles ” not easily measurable such as the weight of the beliefs, the possibilities of passion, etc

For the French market, Paris is an indicator which predicts market evolution. Currently, of the prices of 6000 with 10 000 euros per square meter are current for the required districts. These levels of price ever highest are reached (by taking account of inflation). Even if certain indicators show that the rise of the prices continues, a Krach similar to that of 1991 is always possible.

Indeed, the prices fell of 40% on average in all the districts of Paris between 1991 and 1998 (in constant euros). In addition, certain economists as Jacques Friggit consider the real estate market as any economic market which knows rising cycles and of fall (Statistical data established by Jacques Friggit - denière updated June 2007 on)

The real estate market between private individuals on Internet

The exponential growth of Internet coincides with the growth of the real estate market. Currently the French sector real on Internet is atomized in a multitude of service providers, which would tend to disorientate the owners and private individuals who seek a real estate. This market is thus as well favourable with the good deals as with swindle. A certain number of organizations wished recadrer at best the market thanks to a network of different sites.

Notes and references of the article

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