According to professionals, this year’s old dwelling prices in France should continue to slowly reduce, after three consecutive years of decrease. The reduction of French property prices is definitely an ongoing trend throughout the French territory.
While prices had already decreased notably in both 2012 and 2013, they have decreased by a further 1.7% in 2014, according to the FNAIM (French estate agents federation). These figures are in line with those released by Century 21 franchise (850 agencies) last Monday. Indeed, their figures show a decrease by 2.4% for that same year.
The reduction is a global trend that spared no region whatsoever. Only the region of the Limousin experienced surprisingly, an increase of its prices (by 3.7% in 2014).
According to the same source, last year’s prices went down by 7.4% in the Languedoc Roussillon region, by 6.7% in the Poitou-Charentes, by 5.6% in the Auvergne, by 2.8% in the Midi-Pyrenees and even by 2.6% in the Ile-de-France (Paris) region.
These adjustments to fares might not be sufficient enough to restart the machine: According to the FNAIM, 720 000 properties were sold in 2014, which is slightly better than the 2013 sales and much less than the remarkable pre-crisis figures (more than 820 000 sales in 2007).
Yet, one must not be blind and focus only on the negative side of events. For example by bringing the prices down, estate agencies have permitted the increase the number of young first-time buyers (by 9%) in a year. Something not to be sneered at.
Last but not least, thanks to the strong Sterling, British buyers are coming back on the French market and snatch up opportunities by making 10-20% offers below the asking prices. The improved exchange rate (1.30 as of today) give them an extra purchase power of 13% compared to 2014 and it also helps them to be more successful when applying for a French mortgage.