French House Prices, Boom or Gloom?

INTERESTING that everywhere you look in the last few weeks there are reports of an inevitable downturn in the French housing market. For the most part, it seems that these reports eminate from the popular press in both Britain and France.

It's not often they get to sensationalise something as dull as the french housing market. But one no nonsense report from Global Property Guide says it like it actually is. Here's an excerpt from the conclusion of the report: "No housing bubble, prices will simply stagnate The Banque de France in 2007 antcipated a possible housing bubble. The Notaires de France, however, sees no sign of a collapse in the property market. Accordingly, in 2008 "prices will continue to rise to around the level of inflation. That remains particularly true for property hot spots and large towns. Nevertheless, in certain regions where economic activity is fragile, or where foreign buyers are absent, prices are likely to stagnate. A uniform rise in prices is over." Likewise, FNAIM do not believe there is the prospect of a market crash in 2008, and forecast that, on average, prices will simply stagnate."