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Edition August 1, 2018 - Crédit Agricole S.A.
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  • Edition August 1, 2018

    France – Housing Market: Recent developments and outlook for 2018-2019

    The French real-estate market experienced an exceptional year in 2017. The first signs of a cooling in the market have emerged since the start of the year. This contraction is set to continue in 2018-2019. Firstly, the gradual refocusing of the Pinel scheme and the PTZ on the most sought-after areas will reduce sales of new-build properties. Secondly, mortgage lending rates are set to increase slightly and the increase in house prices will reduce the households' purchasing power and encouraging buyers to take a more wait-and-see approach.

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  • Content:

    - Summary
    - Recent developments
    - Analysis & outlook

  • Extract - Signs of contraction in the first half of 2018

    Nevertheless, the first signs of a cooling in the market have emerged since the start of the year, with a slight fall in sales of pre-owned properties to 948,000 units in May 2018 (total over 12 months), a fall in private sales of new development properties of 5% year-on-year in Q1 2018, a significant fall in block sales of new development properties, a fall in sales of new-build detached housing in May, to 127,000 (12-month total), -8% year-on-year, and a decline in the launch of new construction projects in recent months.

    Similarly, the level of outstanding household mortgage lending, which rose sharply in 2017 to reach +6.2% year-on-year in December, had fallen slightly to +5.7% year-on-year in May 2018. Furthermore, new mortgage production directly linked to real-estate transactions (excluding redemptions and remortgaging) fell by 9% year-on-year over the first five months of 2018 (after +16% year-on-year in 2017).

  • Associative topics : France | Real Estate


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