Real estate: prices in the old continue to progress – 29/11/2018 14:30:55

Prices in the former rose 2.9% in the third quarter.

The real estate sector continues in 2018 on a positive trend after two exceptional years. The index Notaires-INSEE, published Thursday, November 28, indicates that the prices of the old property have kept their pace of growth in the third quarter in France, while the number of sales confirms its stabilization.

In the third quarter, prices rose by 2.9% compared to the same period of 2017, the same pace as in the previous quarter, while sales over the last year at the end of September amounted to 956,000, a level similar to three months as a year earlier. The market continues its momentum in 2018, which marks a solid momentum after two successful years: transactions reached unprecedented levels, in a context of very low interest rates favoring home loans.

The figures of INSEE's notaries confirm, in this respect, the first feedback given at the beginning of October by the main branch networks. They showed a market that is still strong but showing signs of a slowdown in sales.

SLOW DOWN OF THE INCREASE

If the figures given Thursday still reflect a sharp rise in prices in Paris, they show that this dynamic is slowing more and more in the capital: their growth barely exceeds 6% against more than 7% in previous quarters.

Above all, the evolution of prices is rebalancing gradually between the entire Ile-de-France, in peak for years, and the rest of the country. In the first case, the quarterly increase slows to 3.5% and in the second, it accelerates to 2.7%. At this level, these price increases remain higher than the level of inflation, but it is getting closer progressively: after accelerating this summer, it stood at 2.2% in October in France.