Housing Prices: Price softening continues to slow – is now the time to buy in France?

paris

In greater Paris property prices saw a decrease of 3.9%, the largest for 15 years. However recent shifts in the market and an increasing liquidity in the mortgage sector have stopped last year’s decreases in their tracks, with figures for the first part of 2014 showing just a 0.4% decrease.

The bigger picture…

A decrease of 3.9% is quite substantial and this also needs to be added to the slight decreases which occurred in 2012 (-2%) and 2013 (-1.8%). But overall, there is something very important to remember. Since the year 2000, house prices have risen by 75%.

The prices are not falling as interest rate mortgages are very low. Mechanically, this re-solvency of a number of households has increased demand over supply. ~As a result, experts maintain that in 2014, the decline in real estate prices will not exceed 3% and that figure is a very ‘safe’ figure.

Yet another sign the market is bottoming out…