Greedy sellers could cause French property market to stagnate at best

"People with French property to sell should stop asking for 10% more each year" says one industry expert in France. He says that sellers on this side of the channel should take a leaf out of our UK neighbour's book.

A recent appeal for realism on Rightmove.co.uk asked sellers to reconsider their asking prices in light of a faltering housing market to avoid stagnation.

If owners continue to demand unrealistic prices for their properties,he says,the French housing market will be exposed to the same risk.

There is less demand currently for property within the domestic market in France although demand is still comparatively strong. This is largely due to the banks tightening their lending criteria but less purchasing power as a result of rising inflation and fuel costs are also contributory factors.

The gap between the aspirations of sellers to make juicy profits and realistic budget buyers on the hunt for a bargain is ever increasing.

Althought it's not the only factor affecting house prices, if the gap doesn't close or calls to sellers for realism on price fall on deaf ears then we could see a greater decline in house prices than the 10% predicted by 2010.

A well known French estate agency network has a more optimistic view. "Buyers are actively looking for discounts of 10% of the asking price. Over the next two years this discount is likely to creep towards 15%."

The overall effect is that "there is an increased number of transactions and, therefore, gives rise to a more fluid market".

They also see the current climate as a perfect opportunity to "focus our efforts on strengthening our expertise and the quality of customer relations" in an effort to change peoples perception of estate agents.