Since the beginning of the year prices have fallen by around 3% on average for Paris property. In the capital, prices fell by 1% on average in September and 3.5% since the beginning of summer, according to the barometer of MeilleursAgents.com.
Now there are two pinches of salt to add here. Firstly that these figures are for Ile de Paris, the London equivalent of Great London, so they include suburban Paris as well and as a result are more exposed to price fluctuations than compared to in central Paris alone. And secondly, that with Paris property there is a season summer decline of property prices as the market stiffens somewhat with many people taking holidays to the south.
This trend continued this year. Last month, the price of housing fell by 1% on average, after falling by 1.5% between July 1 and Aug. 31, according to the barometer of MeilleursAgents.com. Although since the beginning of the year, prices have still ebbed by 3% and 9.1% since the peak of the market in June 2011.
As hinted to above, these averages conceal wide disparities between the quality of the property in question, where those units with defects (dark, poorly arranged, in poor condition, located on the ground –floor and first floors or within poorly maintained buildings …), have seen low demand and have therefore had their market price reduced anywhere between 10% and 25%.
Therefore Paris buyers – more so than ever – are having to sort the wheat from the chaff.
Buyers are still choosing to wait
In late September, the average price per m2 of Parisian stone rose to €7850, down €80 compared to the end of August, according MeilleursAgents.com. One of the most interesting price swings to note is that of the larger apartments. Large family apartments are no longer supported by seasonal demand and their prices fell by 1.9% in September.
In contrast, small-area apartments (studio and one-beds) whose prices had fallen in recent months resisted (-0.2% after a correction of 2.9% between July and August). Purchasers are always waiting and sellers are still clinging at prices that are no longer relevant. “Disturbed by lower prices and rates of home loans, buyers are afraid of missing out on an exceptional case or pay a too high price,” said MeilleursAgents.
“Sellers are equally disturbed as they cannot reliably determine the sale price of their property for lack of definitive guidance on the market price,” says Sebastien de Lafond, president of MeilleursAgents.com.
Real estate experts expect the full year to see a price correction of about 5% in the capital. To a lesser extent, the barometer found the same trends in the suburbs. Average prices fell by 1% in September in Val de Marne (94), but only 0.3% in the outer suburbs and 0.6% in the inner suburbs.