Fall in Property Prices: Buyers are coming back
Low property prices and borrowing rates have created an ideal climate for buyers in France…
THE PRICE FALL IS CONFIRMED
According to a report conducted by the Notaires de France, property prices in France have seen a new drop of 2% this year, continuing the trend that began at the end of 2012. The drop is more pronounced for apartments (-2.7%) than for houses (-2%). Different property networks have also confirmed this trend: prices altered by an average of -2.6% for Century 21, -2.5% for Crédit Foncier and some -2.3% for Laforêt.
BUYERS ARE REGAINING CONFIDENCE
This price fall reflects the recent increase of purchasing intentions amongst individuals; all the more so now that levels are close to the lowest in history, thus strengthening purchasing power. Being able to borrow at a low rate remains a decisive factor and continues to have a leverage effect on the market. According to the ‘Observatoire du Moral Immobilier’, some 72% of people considering buying a property in France are “convinced that now is the time to buy” compared with just 59% a year ago. In addition, 78% of them believe that the current credit rates in France are attractive.Furthermore, just 36% believe that it is difficult to obtain a loan, compared to 50% last year.
The banking sector also has confirmed this trend. La Caisse d’Epargne recently announced an increase of 25% of its lending for property investment as of January 2015, confirming that 2000 more loans were made this year than during the same period in 2014.
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