| The fall in French house prices slowed in the last | | | | FNAIM, the French estate agents association, |
| quarter, and estate agents forecast prices will | | | | report that house prices fell by 1.3% in the three |
| stabilise over the remainder of 2009. In their | | | | months ending September 2009 compared with |
| regular review of the housing market, FNAIM, the | | | | the second quarter. Over the past twelve |
| French estate agents association, report that | | | | months, French house prices have therefore fallen |
| house prices fell by 1.3% in the three months | | | | by 9.1%. Apartment prices in the quarter fell |
| ending September 2009 compared with the | | | | 0.7%, giving a fall of 7.4% over a year. |
| second quarter. Over the past twelve months, | | | | In the month of September alone prices actually |
| French house prices have therefore fallen by | | | | went up by 0.1%, leading the agents to conclude |
| 9.1%. Apartment prices in the quarter fell 0.7%, | | | | that there were signs of growing stability in house |
| giving a fall of 7.4% over a year. In the month of | | | | prices. |
| September alone prices actually went up by 0.1%, | | | | They argue that the modest rise in prices may in |
| leading the agents to conclude that there were | | | | part be explained by the shortage of properties |
| signs of growing stability in house prices. They | | | | on the market, as many prospective sellers have |
| argue that the modest rise in prices may in part | | | | decided to hold off putting their property up for |
| be explained by the shortage of properties on the | | | | sale until the market picks up. |
| market, as many prospective sellers have decided | | | | As usual there are big variations across France. |
| to hold off putting their property up for sale until | | | | There continues to be controversy over the |
| the market picks up. As usual there are big | | | | FNAIM figures, with some commentators arguing |
| variations across France. There continues to be | | | | that FNAIM have been playing down the extent |
| controversy over the FNAIM figures, with some | | | | of the fall in house prices. The association defend |
| commentators arguing that FNAIM have been | | | | their analysis by reminding us they did argue |
| playing down the extent of the fall in house prices. | | | | earlier this year that prices remained too high, and |
| The association defend their analysis by reminding | | | | that there was the need for a 'purge' in the price |
| us they did argue earlier this year that prices | | | | of property, in order that the market could regain |
| remained too high, and that there was the need | | | | its colours. Each month FNAIM analyse around |
| for a 'purge' in the price of property, in order that | | | | 5000 sales, representing 12% of the total market. |
| the market could regain its colours. Each month | | | | There is some backing for the FNAIM perspective |
| FNAIM analyse around 5000 sales, representing | | | | from the Syndicat National des Professionnels |
| 12% of the total market. There is some backing | | | | Immobiliers (SNPI), a rival association of French |
| for the FNAIM perspective from the Syndicat | | | | agents, who do consider that buyer interest in the |
| National des Professionnels Immobiliers (SNPI), a | | | | French housing market has risen since the |
| rival association of French agents, who do | | | | summer, although they anticipate no major |
| consider that buyer interest in the French housing | | | | recovery until the second half of 2010. |
| market has risen since the summer, although they | | | | The national estate agents group Century 21 also |
| anticipate no major recovery until the second half | | | | report an increase of 14% in the number of sales |
| of 2010. The national estate agents group | | | | in the third quarter over the same period in 2008. |
| Century 21 also report an increase of 14% in the | | | | Although house prices remain down on those |
| number of sales in the third quarter over the | | | | recorded in the same period in 2008, on average |
| same period in 2008. Although house prices | | | | Century 21 report that prices in the quarter |
| remain down on those recorded in the same | | | | remained stable. As usual, however, there were |
| period in 2008, on average Century 21 report that | | | | significant regional variations. House prices falls |
| prices in the quarter remained stable. As usual, | | | | were recorded in Languedoc Roussillon, Limousin, |
| however, there were significant regional variations. | | | | Aquitaine, and Brittany, while there were notable |
| House prices falls were recorded in Languedoc | | | | increases in the quarter in Provence Cotes d'Azur |
| Roussillon, Limousin, Aquitaine, and Brittany, while | | | | and Poitou Charentes, both regions that have |
| there were notable increases in the quarter in | | | | recorded a significant reduction in prices in |
| Provence Cotes d'Azur and Poitou Charentes, | | | | previous months. |
| both regions that have recorded a significant | | | | Orpi, another large group of estate agents, also |
| reduction in prices in previous months. Orpi, | | | | recently reported renewed interest in the market, |
| another large group of estate agents, also | | | | mainly due they say to average price falls of |
| recently reported renewed interest in the market, | | | | around 20% over the past two years. |
| mainly due they say to average price falls of | | | | Similarly, the Guy Hoquet national chain of agents |
| around 20% over the past two years. Similarly, | | | | has also reported an increase in sales of 12% in |
| the Guy Hoquet national chain of agents has also | | | | September over the same period last year, |
| reported an increase in sales of 12% in | | | | although in most areas prices were still on a small |
| September over the same period last year, | | | | downward trend. |
| although in most areas prices were still on a small | | | | The FNAIM third quarter figures are also broadly |
| downward trend. The FNAIM third quarter figures | | | | in line with the trend reported recently by the |
| are also broadly in line with the trend reported | | | | Chambres des Notaires, who consider that |
| recently by the Chambres des Notaires, who | | | | property prices fell by 2.3% in the second |
| consider that property prices fell by 2.3% in the | | | | quarter, following a fall of 3.8% in the first |
| second quarter, following a fall of 3.8% in the first | | | | quarter. |
| quarter. Given the current weakness of the | | | | Given the current weakness of the French |
| French economy FNAIM remain prudent on the | | | | economy FNAIM remain prudent on the outlook. |
| outlook. An opinion poll they carried out as part of | | | | An opinion poll they carried out as part of their |
| their quarterly review showed that only 12% of | | | | quarterly review showed that only 12% of |
| households had an intention to buy within the next | | | | households had an intention to buy within the next |
| three years, although 39% considered now was a | | | | three years, although 39% considered now was a |
| good time to buy a property. Respondents cited | | | | good time to buy a property. |
| continuing difficulties in obtaining a mortgage due | | | | Respondents cited continuing difficulties in obtaining |
| to the level of the deposit required, and that | | | | a mortgage due to the level of the deposit |
| mortgage interest rates were still too high, | | | | required, and that mortgage interest rates were |
| despite having dropped significantly over the past | | | | still too high, despite having dropped significantly |
| few months. A majority also considered that their | | | | over the past few months. A majority also |
| income had gone down in the past year and that | | | | considered that their income had gone down in |
| they remained concerned about the economic | | | | the past year and that they remained concerned |
| outlook. | | | | about the economic outlook. |
| In their regular review of the housing market, | | | | |