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Today the Paris and Ile de France “notaires” association released its latest property market report.
Data are in relation to sales as of the end of November 2013. Statistics are related to selling prices at the date of the final contract (“acte authentique”) which happens generally 3 months after the preliminary contract (“compromis de vente”) when the buyer and seller agree on the price*.
Sales volume increased by 21% during September-November 2013, compared to September-November 2012:
- Increase over all “departments “ of Ile de France (= Paris + surrounding areas)
- Number of Sales of flats increase by +21% and houses by +22%. Overall sales volume at 35,570 over the 3 months September-November 2013 (all Ile-de-France)
- This is offsetting the volume decrease over the 2nd semester 2013
- Therefore sales volume from January 2013 to November 2013 are up by 2% compared to previous year
- Similar trend seems to follow in December 2013, with a possible increase by 5% compared to December 2012.
- Increased volume might have been partly triggered by the capital gains tax reform (see previous posts “2013 2014 capital gains tax calculator for French second home” “Capital gains tax on French property: latest updates and calculations (part 1)), although most of the effect on volume should happen over the first half of 2014.
Moderate price decrease, 1.5% over a year, 1.1% over 3 months:
- Decrease by 1.5% over one year: from -1.3% in Paris to -1.9% in Essone
- Slightly more for flats (-1.6%) than for houses (-1.3%)
- However, from August to November the decrease as accelerated : -1.1% in 3 months, but this is partly due to a seasonal effect
- In Paris average price were at Euros 8,200/m2 at the end of November 2013 (= price at “final contract” date so 3 months after the buyer and seller actually agreed on price when they signed the “preliminary contract”) . This is in fact even lower than the “MeilleursAgents.com” barometer for September 2013, the equivalent actual agreed date on price, which was at Euros 8,270/m2 (“MeilleursAgents.com” record price at “preliminary contract” date)
- According to the “notaires”, price in Paris were down by 1.1% over 3 months, and by 1.3% over a year
- Preliminary indications from “preliminary contracts” signed by the notaires, would lead to a very small price increase to a few 10th of Euros per square for the “final contracts” signed in Spring 2013. Therefore, there seems to be a discrepancy with the estate agents who experienced a deeper decrease (see the Paris section of our last post “French property market down by 2-3% in 2013, trend likely to follow in 2014“)
- There is no information about change in quality of property sold, and/or type (number of room etc…) which could give more insight.
* Therefore, “notaires” statistics at the end of November 2013 should be compared with estates agents statistics at the end of August 2013. (our last post “French property market down by 2-3% in 2013, trend likely to follow in 2014” relates to estate agents statistics at the end of December 2013). This report does not include the sales of newly built properties.