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Where will French real estate prices go in 2016? Details

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Will French real estate prices go up or down in 2016?

We are not prophets so we have turned to other sources to get a taste of what may come.

The following is exerted from an article in French in Explorimo 

(Below is our best translation)

Jean François Buet, president of the National Federation of Estate Agents (Fédération nationale des agents immobiliers -FNAIM) says :

“If there is an increase in the number of transactions we typically see an increase in prices since buyers no longer wait for prices to go down”

The hidden explanation we believe is that owners no longer have to reduce their prices to inspire buyers to act. In fact, they can slightly increase their sale price if there is a high demand for their French real estate.

Note: There was a 1.9 percent increase in prices on average in France in the last 3 months of 2015.

Overall, conservatively, the FNAIM estimates a increase decrease range in French real estate prices of between minus 2 percent to positive 2 percent.

Philippe Taboret, deputy manager of the credit broker CAFPI shares “the change in prices will depend on the French mortgage rates” His anticipation is that the rates will go up by year end.

Olivier Eluère, economist at Credit Agricole believes falling prices in France is not over. He sees a decline of 1.5 percent in 2016.

One thing we can report from the agents in our community network is that they are definitely seeing an increase demand for real estate compared to early 2015 and 2014.

Perhaps, if you have been postponing your French real estate investment it is time to make contact with an English speaking French real estate agent in your area of choice to see if the timing is right for you based on current prices and interest rates.

Contact us here to connect you with an agent in your area of choice. No charge for our help to connect you.

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Paris and Ile-de-France record real estate sales

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Notaries of France in Paris / Ile-de-France are reporting record real estate sales for the last three months of 2015.

According to a report in Explorimmo between September and November 2015, 42,000 existing homes were sold in Ile-de-France.

This is an impressive 42 percent more than in the same period of 2014.

The reason perhaps is the increase of the ‘droits de mutation’ (French real estate transfer tax) that is now coming into effect in Paris. This is a tax that is part of the fee paid by a French real estate buyer to the notary during a purchase.

Paris was one of the few remaining areas in France that had not increased the ‘droits de mutation’.

At the time of writing there are only 6 departments in France keeping the lower real estate transfer tax rate.

As of writing they are:

l’Indre (36), l’Isère (38), la Mayenne (53), le Morbihan (56), la Martinique (972) et Mayotte (976)

You need to check with a notary to confirm this has not changed when you have read this article.

 

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2016 French Mortgage Rates Going Down Really

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Where are French mortgage rates going?

Recently French economists have suggested the only way the French real estate market will see the introduction of more buyers and therefore, more property sales is for another decrease in mortgage interest rates. Remember rates are already at a historical low. The economists have little faith in the French government buying programs to encourage buyers.

Buyers are focused on the cost of a mortgage long term and their mortgage qualification is impacted by the mortgage rate.

This above note is referenced in a new Explorimo article in French.

The French economists maybe right.

The rates have fallen again.

In December 2015 the overall average interest rate was 2.20 percent and now January 2016 ended with an average overall rate of 2.15 percent, depending on your qualification, of course.

Consult your English speaking French mortgage broker to see how this change can impact your ability to purchase.

We help you contact an English speaking mortgage broker at no charge go here for direct contact or contact us for more guidance.

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How to Sell your French Home Faster

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What is one way to sell your French property faster that does not include dropping your price?

When you are selling your French property it is extremely important that you only share with potential buyers high quality photographs.

High quality photographs have been shown to sell your home 32 percent faster. Read this article. 

Many times you will see photos online where the image lacks proper lighting, the focus is on the toilet not the beautiful Italian shower and the large living room appears small.

Many people want to maximize the speed of their house sale, however, they will not invest in quality photography like those shown above and below taken by a professional photographer.

Yes, indeed you can take nice photos with the modern smart phone but they rarely match the buyer attraction ability of professional photos.

If you would like to contact a professional photographer in France consider checking out this one.
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