The French property market stays on course
PROPERTY prices in France as a whole were found to experience slight corrections here and there but overall the housing market remain stable.
And there are no signs on that horizon that this situation will change, according to seloger.com in the latest edition of its monthly price barometer.
French property prices were found to have slowed in areas that had seen increases and were even seen to increase in places where prices has stalled.
In the south of France, Monpellier saw an increase of 0.4% over the first quarter but the all important psychological threshold of 3,000 euros a square metre is fast approaching.
In Lyon as in Marseilles prices dropped slightly.
Paris, however, saw an increase of almost 1% for the last three months and is on track for a 6% increase over the year. The average price per square metre is 7,554 euros.
So, the housing markets in the major French cities have also changed direction in the last few months but are not expected to suffer the same severe decline that other major european cities have.
The question is, could slower prices increase become a sustainable trend in French property prices over the coming year?
source: capital.fr
Comments
FNAIM and Orpi don't seem to
FNAIM and Orpi don't seem to see the crisis, no crash, everything's hunky dory according to them.
This country is extraordinary.... Lagarde sees growth increasing by 1.7%, Fillon thinks he's going to rebalance the budget. A country of liars led by liars!
You have to read between the
You have to read between the lines. You're right. A lot of the stuff written in these, so called, property price articles are open to interpretation. I have no doubt that the articles published on this site are from reputable sources but I suppose there needs to be a more balanced view. There are always two sides to the coin. I wonder too if it isn't just a French trait. It does look as though organisations such as the fnaim, for example, who seem to be 'talking up' the french property market have their head in the sand. My 11 year old son came home from school one day last year completely distraught that I had lied to him about the fact that some guy called Christopher Colombus discovered America. According to his teacher it was a french man who made the discovery. The point is that maybe the French, as lovely as they are, are sometimes in denial. What's contradictory is that fact that, economically, the world is in a bad place at the moment but we continue to read reports in the french press about demand for french property being buoyant. It's almost as if France has some kind of immunity that the rest of the world doesn't. Today I read a report in the paper (french) about the global economic crisis guaranteed to last, at least 12 to 18 months. What I don't understand is the confidence of the french institutions that the french property market will escape without a scratch. In fact, the opposite is more likely to be the case. The powers that be see the writing on the wall. The property market in France is, they actually think, on the slippery slope but they try to contain mass panic through the media. They slickly back their claims about the housing market by throwing lots of numbers about and expect us to swallow them. Maybe my awareness of the actual state of the market is heightened by the fact that I also watch the BBC and CNN. With respect, I know things the average french homeowner doesn't or isn't being told by the french media and can extrapolate from that a more likely or realistic scenario. But even all he 'talking up' can't disguise the fact that there's no light at the end of the tunnel until 2010. At least. If you have a house for sale in France and can afford to, take it off the market. If you're buying property in france then maybe now is a good time. If we are to rely on the french property press it's difficult to make the call.
Property Price
Property Price Articles.
Many of the published articles relating to French property prices in 2008 are of the nature "corrections" "no significant decline" or "some progress" etc etc. Many of them originate from sources where one must question objectivity such as FNAIM or agencies.
The statistics behind the compilation of such 'views' are of course open to interpretation. Many are based upon the hopelessly inadeqate basis of 'property sold' which fails to take into account the numbers of properties unsold. Others are very heavily skewed towards discussion of a very few property semi-hotspots.
The reality on the ground is rather different. Over vast areas of provincial France, in 2008 much property has been effectively unsaleable.
Yes this does vary by region, location and property type etc, but on the whole prices have collapsed in some areas with much property having in effect, virtually zero realisable value - yes, let's be clear what I am claiming here - effectively they have NO SIGNIFICANT REALISABLE VALUE! That's because there are simply no buyers for them at any almost price.
One agency I know said they went recently nearly a month and did not receive a single significant enquiry relating to properties they have for sale.
It is always sad to see this phenomenon described as "seller greed" or "indicative of the need for a new pricing reality". In our area of the North West people (French and foreign owners) have been trying to sell their properties in many cases for 1-2 years. MANY REPORT NOT A SINGLE VISIT IN 12+ MONTHS !
After numerous and very substantial price reductions, many in near desperation are asking the same price they paid for the house 4-5 years ago and still cannot even get people to come and view it let alone buy.
I know from contacts with sellers that this is not restricted to one area - it is a growing catastrophe for many Britons in particular, who are now effectively trapped in a house or location they wish to leave for whatever reason. Expect BIG losses for many - particularly those who have purchased say around 2005-6, unless there is a highly unlikely massive upsurge in the market.
This potentially huge market and social problem is almost never covered or reported in many articles where people continue to write about how everything is essentially fine whilst in reality vast numbers of French Property owners and investers face major losses and in more than a few cases, virtual financial ruin.
Yes, 'talking up' the market is understandable but could we not have a little more objectivity and focus on the broader picture ? There is a major story here to be analysed and told !
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