Recent figures show that the transaction numbers are increasing in France, providing a knock-on effect on French house prices. The number of transactions annually stood at around 800,000 or more for the five years preceding 2007, before sales numbers across France began to fall. The main reason for these falls was a combination of very high interest rates and inflation just prior to the financial crisis and the collapse of confidence thereafter. This continued until the middle of 2009, when annual transaction numbers stood at just over 550,000. It is no surprise that as mortgage finance became more affordable, and the end of the world didn’t materialise, people were drawn back to the market, especially as in some cases buying was cheaper than renting. Since mid-2009, the number of completed house purchases in France has risen by around 100,000 per year. The figure now stands at just under 650,000 with the v-shaped recovery continuing. House prices have followed more or less exactly the same trend, with mid-2009 seeing prices start to rise again, and this upward trend has continued. While transaction levels remain below their peak, bargains and discounts will still be possible to find but these will become rarer as the market picks up again.
Click on this presentation to find graphs illustrating these figures.