French house prices ‘up by 6.1%’
Notaires de France announce record number of sales and accelerating rise in prices
House prices have risen by 6.1% over a year, according to new pre-contract figures from the Notaires de France, with the average rise for flats at 4.35%.
The rise in property prices is accelerating across France, with the market driven by motivated buyers, a zero-rate government loan (PTZ) that is working well, and the Pinel tax initiative for buyers of new-builds – all against a backdrop of favourable interest rates.
The pre-contract prices show, essentially, what the seller is willing to sell for if they reserve the property for the buyer. Notaires say they give a very good glimpse into future confirmed sales.
Notaires de France figures show 867,000 annual sales recorded to the end of February 2017, exceeding the May 2006 annual peak of 837,000 sales.
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And, while the notaires were cautious about the small increases in house prices in the 4th quarter of 2016 (+1.5% for old houses and +1.9% for old apartments) and even a decline in cities such as Toulouse and Marseille, they reported spectacular increases in the vast majority of departments in pre-contracts, their leading price indicator.
To see official figures charting rises (and falls) across France up until December 2016 see the May issue of Connexion. Order a pdf here or find us in newsagents this weekend.