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According to www.meilleursagents.com, property prices in Paris decreased by 0.7% in September 2013. The price index is based on the preliminary acquisition contracts (“compromis de vente”) (1) signed during the month. However, price for bigger properties (2 bedrooms and more) decreased significantly more (-2%) than the smaller flats/houses (-0.1% for studios to 2 bedrooms). In financial term, this correspond to a budget below 300 000 Euros for the smaller properties.

In the nearest suburb (“petite couronne”) price evolved from stability in the wealthy “Hauts-de-Seine” to a decrease by 0.2% in “Val de Marne” and 0.7% in Seine Saint Denis. Price diminished more sharply in the “grande couronne” by 2% ( “départments” number 77,78, 91, 95).

The property prices show a clear decline over the last 12 months: -1.8% in Paris, (-4.5% on bigger properties and -0.2% for smaller -2 bedrooms or less-), -4.1% in the “grande couronne”, and -2.2% in the Hauts-de-Seine. Thus, there is no real “property crash”, however prices are sliding down slowly toward a 0 to 5% decrease over the 2013 year.

The market is becoming favorable to the buyers. However, this is especially the case for larger properties. The property market seems to be divided by the € 300 000 Euros barrier. Above this threshold, buyers are not numerous and sellers do have to adjust their price downward and to be patient. Below € 300 000 Euros, the market is still active with more buyers and fewer property offered on the market. There has been a 0.15% interest rate hike on mortgage over a month which has been offset by property price decrease. With an average rate at 3.4% over 20 years, the average Parisian household with a € 5,500  monthly income may just finance a purchase of € 300 000 –  a monthly repayment of € 1,865 (a little over 1 / 3 of monthly income). While it is now possible to shop around to buy a good property at a fair price, buyers should not dream for an exceptional bargain.  The environment requires in depth knowledge of the property price to be able to spot a good quality property at an attractive price.

The average price in September reached € 8 270 m/2 (-0.7% in a month), here are the average price calculated by www.meilleursagents.com  and the change over a month for the Paris “arrondissement”:

1st arrondissement 10 411 € / m² +0.2%

2nd  arrondissement 9 283 € / m² +0.1%

3rd arrondissement 9 109 € / m² -2.4%

4th  arrondissement 10 774 € / m² -2.6%

5th arrondissement 10 321 € / m²-2.1%

6th arrondissement 12 768 € / m²-0.1%

7th arrondissement 13 076 € / m²0%

8th arrondissement 9 834 € / m²-2.1%

9th arrondissement 8 625 € / m²-0.8%

10th arrondissement 6 949 € / m²-1%

11th arrondissement 7 956 € / m²-1.1%

12th arrondissement 7 911 € / m²-1.2%

13th arrondissement 8 262 € / m²0%

14th arrondissement 8 723 € / m²+0.1%

15th arrondissement 9 030 € / m²-0.7%

16th arrondissement 9 966 € / m²-1.3%

17th arrondissement 8 644 € / m²-1%

18th arrondissement 7 436 € / m² +0.5%

19th arrondissement 6 337 € / m² -1.5%

20th arrondissement 6 575 € / m² -0.4%

(1)    while the French “notaires” usually base their study on the final contract (“acte de vente” signed 3 months after the “compromis de vente” read our post on “compromis de vente”: “buying or selling property in France: compromis de vente or promesse de vente?”). The downward trend should anticipate the “notaires” data by approximately 3-4 months (average time lag between the “compromis” and “acte de vente”).