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.