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Meilleursagents records price fall in Paris in October, first in over a year
The property price site has recorded its first month-on-month fall in the capital in over a year. October saw property prices fall 0.1% in Paris, although the luxury market there continues to impress.
It has been coming for a while and might be a relief to some onlookers. After a year of monthly price growth that has astonished onlookers, prices in the capital stagnated in October while year growth remained the same, at around 7.4%.
Meilleursagents’ monthly French property prices report, the most comprehensive and respected non-official price measure, shows price falls in four out of France’s 10 biggest cities: Paris (-0.1%), Marseille (-0.8%), Strasbourg (-0.5%) and Lille (-0.2%). Nice (+0.9%) and Bordeaux (+1.4%) performed strongly.
What’s behind the fall in the capital?
Meilleursagents cites widespread acknowledgement that mortgage rates will remain low for some time. When they began to creep up at the beginning of the year, many buyers frantically rushed to wrap up their mortgages while conditions seemed opportune. With the rises since then proving negligible, buyers have taken the foot off the gas.
Of course, a fall of 0.1% over the month is negligible in the long-term. Annual price growth is still above 7% and the Paris Notaires predict that 2017 as a whole will see appreciation of around 10% in the capital.
Luxury property is one segment that is outperforming all others. Seloger, another property site that publishes monthly figures, recorded annual price growth as high as 15% in the 4th and 9.8% in the 6th, two prime spots for luxury Parisian property. Add to that the unofficial obliteration of the price-per-m2 record in the capital recently and other anecdotal evidence of the election’s positive effect on luxury prices, things look rosy for high-end property.
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