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.
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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
