Fresh snow on the Pyrenees in time for Christmas
I have just been reading through the swathe of end-of-year reports
from various estate agent groups, notaire’s associations and finance companies
in order to get an overall picture of how the French property market has
performed in 2012. They make interesting and confusing reading which pretty
much sums up the property market in this part of France. Having started the
year with low expectations of client numbers, I have in fact been hugely busy
but there has been absolutely no pattern throughout 2012 either in types of
buyer or the sort of property I have been asked to find. And budgets have also
been right across the scale. So what is going on according to those in the know?
Well the latest figures
published by the ‘Notaires de France’ show that prices have fallen
nationally by 3% in 2012 although this figure hides some notable falls in
certain areas and rises in others (prices around Toulouse have actually risen
by 4.5%). Over the past year, FNAIM, the national association of French estate
agents, reports that house prices have fallen by an average of 1.3%. There has
also been a substantial fall in property sales with both Notaires and estate
agents reporting a slump of around 20% in the volume of sales despite the
record low mortgage rates, at around 3.3%. Much of this is to do with the banks
who have introduced tougher lending criteria with the result that mortgage
lending is down by around 30% in the past year, a record fall and this is
keeping the market subdued. Those departments that have continued to show
positive growth in house sales over the past four years are Haute-Garonne,
Gironde, Indre, Savoie and Haut-Savoie.
In this region, there
has certainly not been a noticeable drop in prices actually asked this year but
I have noticed that sellers are being more realistic about accepting offers
below their asking price and this seems to have revitalised the market here and
kept things moving. This means that 2012 has been a buyers’ market which is
ideal for my clients and I would guess that this will continue into next year. Village
properties have also been very popular this year, perhaps because of the
generally lower price range and properties needing total renovation are also in
the frame again as are part renovated properties which are habitable though in
need of some finishing, as long as the price is realistic and reflects the work
to be done. In addition, demand for luxury and high end properties in good
locations is also strong, thanks to a lack of domestic buyers which has
opened up opportunities for British and international buyers to snap up
desirable properties.
So how to sum up the property market in this region in 2012?
Well, despite the continued uncertainty in the Euro-zone, France stays
consistent in its appeal to foreign buyers and I can’t see that the wish to own
a small part of this beautiful country changing any time soon. Certainly the lower risk factor of buying property
here keeps buyers and investors interested and the very low mortgage
rates, tight controls and the weakening Euro mean that French houses are still
very good value. And while property in
this region hasn’t been reduced to bargain basement prices, it generally
remains well under UK averages with plenty of
properties available within any budget.
So despite the widely varied reports on the market from different sectors
of the industry, 2012 has been a relatively stable year for French property in
my region. Sellers have become more realistic about the price they are likely
to get and buyers seem to be more flexible in the kind of property they are
looking for and the compromises they are prepared to make. This is keeping the
market moving and property here has been a very good investment in 2012.
I don’t
have a crystal ball and I hesitate to make any predictions for 2013; I don’t
think anyone knows what is going to happen in the financial world and European
crisis next year but I have every confidence that, for anyone who wants a
beautiful French house in a stunning location combined with a fantastic quality
of life and a lovely climate, this part of the Midi-Pyrenees is one of the better places in the world to
spend money on property. But that’s not a prediction, just a personal viewpoint...!
I am taking a break over Christmas and the New Year and I
shall be ‘un-connecting’ from every type of communication device! I wish you all
a very happy Christmas and New Year and look forward to unearthing some more
dream properties in 2013.
