Evolution of property sales in France
Sales prices for housing continued to rise steadily in the early part of this year – with mid-market prices up 3.2% across France compared to the same period in 2017. However, there was a slow-down in the rise in the number of sales, the latest notaire figures show.
Figures up to the end of April show 953,000 sales finalised in a year, an increase of 7% on the previous quarter but lower than the 13% rise recorded three months earlier.
Looking back, the number of transactions also fell in the same period last year but from May there was a rise again but it had little effect on prices.
Overall, mid-market prices on older property rose but some areas did better than others giving significant regional diversity. In Ile-de-France prices rose 4.3% in the 12 months but just 2.7% in the regions.
Prices stabilised in most departments but some such as Aveyron, Dordogne, Doubs, Indre, Loir-et-Cher, Haute-Loire and Oise, saw drops... but this list was not the same as in the previous quarter showing some yo-yoing of prices.
Higher rises in flat prices were seen in Bordeaux (up 18% in a year), Annecy and Lyon (up 10% in a year) and Brest, Rennes and Reims (all increasing 5-9% in the same period).
Nice, Nantes, Dijon and Strasbourg saw smaller increases of 2-4% but Grenoble, Besançon, Saint-Etienne, Toulon and Orléans saw prices fall by a small amount.
Most main regional towns across the country saw house prices rise but with marked variations from town to town.
Several factors contributed to the easing of the market, with a fall in households’ buying power due to the rise in social charges and cuts in benefits.
The Banque de France said average long-term fixed mortgage rates stayed low at 1.58% with better deals possible.
A study of countrywide pre-sale agreements shows prices at the end of August 2018 up 2.9% for older flats (down from 4%) in a year and 2.4% for older houses
