French Housing Market Braces Itself For New Year

Share Article

In general, the french property market has seen a steady increase in sales over the last year but recent figures from Credit Agricole suggest that in 2012 it may be in for a rough ride.

Despite the difficult trading conditions, we have enjoyed a successful year. We have seen an increase in sales of almost 30% . . . and our listings have risen to over 7,000 properties

In general, the french property market has seen a steady increase in sales over the last year but recent figures from Credit Agricole suggest that in 2012 it may be in for a rough ride.

Commenting on the past year, Trevor Leggett of Leggett Immobilier, says:

"Despite the difficult trading conditions, we have enjoyed a successful year. We have seen an increase in sales of almost 30% and our property website, has seen an increase in page views from 12 to 15 million and our listings have risen to over 7,000 properties for sale."

However, 2011 was certainly not an easy year for French estate agents. Leggett reported that a record number of accepted offers never made it to completion with approximately 25% transactions failing due to mortgage refusal and general instability. This figure would normally be in the region of 10%. In the UK, the property forecaster Hometrack has warned that transaction levels are likely to be their lowest for 40 years (at 840,000 sales, almost 50% down on 2007), there are no figures available for the French market yet but it is very likely that they will report a slow-down in the second half of the year.

According to Credit Agricole, next year may be worse - they are forecasting a national fall in prices of 5-6% with an 8% fall in overall sales. However, Mr. Leggett thinks that the French property market will suffer less than other European countries but nevertheless, the fall in overall sales is significant and needs to be addressed:

"The market is in danger of stalling unless we all take a sensible view on pricing. If owners and estate agents are realistic with their expectations and valuations then the French property market can remain amongst the healthiest and most attractive in Europe. We have seen a deteriorating economic climate, doubts over the long term viability of the euro, increasing interest rates and the banks tightening their lending criteria - given these factors we are proud that Leggett Immobilier continues to grow . I'm optimistic that, with prudence in the short term, the French property market has an extremely healthy mid to long-term future."

About Leggett Immobilier.

Leggett is an independent, family run business based in France with a network of over 120 fully trained commercial agents covering most of the country. Leggett offers an unrivalled mixture of local knowledge and national expertise, professional service and full after sales support.

###

Share article on social media or email:

View article via:

Pdf Print

Contact Author

Joanna Leggett
LEGGETT IMMOBILIER
+33 (0)6 50 13 53 08
Email >
Visit website