# Surge in Prices of Old Houses: A New Challenge for the Real Estate Market A new report by LPI-SeLoger has revealed that there is a significant increase in the prices of old houses in the French real estate market. This trend has been attributed to the low-interest rates and the high demand for houses in the suburbs and rural areas. According to Michel Mouillart, a professor of economics at the University of Paris-Ouest, the current situation is a result of the mismatch between supply and demand. He explains that while the demand for houses has been increasing, the supply of new houses has not kept up with the pace. This has led to a surge in prices, especially for old houses. ## The Impact of Low-Interest Rates The low-interest rates have been a major factor in driving the demand for houses. With interest rates at an all-time low, many people are taking advantage of the situation to buy houses. This has led to a rise in demand, which has in turn led to an increase in prices. ## The Shift to the Suburbs and Rural Areas The COVID-19 pandemic has also played a role in the shift towards the suburbs and rural areas. With people working from home, there is less need to live in the city. This has led to an increase in demand for houses in the suburbs and rural areas, which has in turn led to a surge in prices. ## The Future of the Real Estate Market The current trend is expected to continue in the short term, with prices of old houses expected to rise even further. However, in the long term, the situation may change. As the supply of new houses increases, the demand for old houses may decrease, leading to a stabilization of prices. ## Conclusion The current surge in prices of old houses presents a new challenge for the real estate market. While it is good news for sellers, it may make it difficult for buyers to afford houses. As such, it is important for buyers to be aware of the trends in the market and to make informed decisions. > *Image: A beautiful house in the suburbs of Paris, France. Source: *