From French Entrée (here). I concur.
Confidence is returning to the property market in France. The estate agent network Logic-Immo conducts a survey of the mood of the market three times a year. In their latest report published in March, over two thirds of buyers felt this is a good timeto buy and have an increased level of confidence in reaching a successful conclusion to their search in the short term. Over three fourths of buyers consider borrowing rates to be attractive, a record percentage since the survey started.
Stabilising
Among the elements attributed by the survey to explain this unprecedented 5-year-high optimism, are three main factors: the perception that the economy is slowly stabilising, the historical low levels for mortgage rates, and expert expectations of stability in property prices. Buyers are increasingly focused on finding the ‘right’ property. What defines ‘right’ is relative to each individual buyer, but in general terms the perception rests on two main elements, the right price, and the right amount of renovation or redecoration work to be done, if any, in relation to the asking price.
Buyer’s Market
A market tension indicator, published by Meilleurs Agents, measured by how many buyers there are for every seller, is still showing the market leans in favour of buyers, although according to a survey of Notaires’ offices, for the first time since the crisis began there is an increase in activity measured by the number of offers signed, meaning that the ratio may be about to start balancing out. For foreign buyers in particular, the currency exchange rates have provided a unique advantage with the dollar approaching parity and the strong pound allowing the overseas buyer’s budget to stretch further.
Prices and Volume of Transactions
The Notaires de France price index published in April shows that prices have dropped on average over the last 12 months by 2% in Paris and 2,6% in the rest of the country. As regards the number of property transactions completed, the last reading in January 2015 shows 700,000 contracts for the last 12 months, 3% fewer contracts versus the equivalent reading taken in January of 2014.