Over the past twelve months there has been evidence of a noticeable fall in French real estate prices in many areas. Sales are reported to have fallen by around 20%. The number of new homes being built is also on the wane. The national association of French estate agents (FNAIM) reported an average fall of 1.3% over the last year. Although property values appear to be showing a significant degree of resistance in the light of the fall in sales, the latest figures show that some regions of France prices have fallen by as much as 8% in 2012, with greater falls occuring in the rural areas.
According to FNAIM, the largest falls took place in Brittany (-7.9%), Lower-Normandy (-6.9%), Lorraine (-6.7%), Champagne-Ardenne (-5.6%) and Upper-Normandy (-4.9%). No region escaped this market correction with even the hotspot of Languedoc-Roussillon showing a 3% drop in house over the year. With the ongoing economic crisis and fall in living standards, the situation is not altogether surprising. However, this downward trend is presenting opportunities. Given that mortgage rates at near an all-time low of around 3.5%, there are bargains to be had for buyers.
