Rebound in sales of new build houses in France

FURTHER proof that the French property market is on the rebound came in the form of a report published by the Ministery for the Environment today which stated that sales of new homes in France were up considerably in the first quarter of 2009.

Ten thousand more new sales were recorded in the first three months of the year compared with the end of 2008.

In total 25,314 houses were sold from January to March 2009.

The reduction in the number of transactions was brought back to 4.9% over the year which is an encouraging burst after the drop of 47.6% reported at the end of 2008 compared with the same period in 2007.

Planning grants were down by 16.4% compared to the same period last year with a total of 451,647 being approved.

Average house prices have remained more of less stable and are now at 225,000 euros from 226,100.

There's more movement too in the Dordogne property market.

Several factors in recent weeks can be attributed to more overseas investors taking the plunge.

British buyers are taking advantage of the current recovery of sterling against the euro. 

Most realise that property in the Dordogne is still very much a buyers' market.

Shrewd British investos now reason that a 15% recovery in sterling coupled with a similar sized reduction in asking prices on property for sale in the Dordogne puts them squarely back in the same position when the rate was between 1.40 and 1.45.

Sterling's rally is widely expected to continue but nobody can be sure for how long. 

In the meantime, buyers are making hay while the sun shines.