Monday, June 7, 2010

French property sales up, interest rates down

A recent batch of reports has produced the usual confusing picture of the French property market.

Among the certainties are the fact that typical interest rates are at their lowest since 2006, with some lenders offering 15 year loans at a fixed rate of 3.35%, with borrowers contributing 10% of their own capital. The T3 (three rooms, kitchen and bath) is still seen as the most secure investment by buyers. A rise of 10% in loan approvals was recorded during the first quarter of 2010.

Some sources also report an average 16% shortage of good saleable properties, and 21% for apartments. As a result small price increases have been noted in some of the most popular sectors, including Paris and other large centres.

In Languedoc-Roussillon we are currently experiencing a shortage of good, saleable properties, with too many still coming onto the market over-priced and not in a fit condition to show to potential buyers.

Would-be sellers have only themselves to blame if their property fails to sell within a reasonable time, while these near ideal market conditions continue to prevail.

Sources: Argus du logement, Universimmo, Notaires de Paris.