Why are house prices falling in Dordogneshire?

[smiffy mob]

my auditer had a conversation with a large builder in lyon and his view on the overall housing market was very gloomy, work has stopped even on government housing projects

[Turnip]

House prices are coming down nicely so its time for another look but I don't think I will buy yet since prices are still falling . Probably best to sit on the cash pile and watch?

Anyone else sold in the nick of time in the UK before the "Crunch."

[P-D de Rouffignac]

As so often, headlines such as this are far too simplistic and do not take account of the realities of the French property situation. It is true that some properties, in some areas are coming down slightly in price but they have actually risen in Paris by 10.1% and by up to 5% in other cities. The city of Nice has recorded the highest rises in 2008 of 7.27% for apartments and 10.5% for houses (figures from Notaires de France:INSEE, 23 October 2008).

My advice is always to do your research, look at niche markets and don't be unduly influenced by headlines. After all, the world's stock exchanges have 'crashed' and risen again within a matter of days.

Peter-Danton de ROUFFIGNAC www.francemediterraneanproperty.com

[NormanH]

An 'Oldie but Goldie' here

perhaps less well known here

[Turnip]

Ignore the "carping" and simply sit on the sidelines with your cash and monitor the fall in house prices as unemployment rises in the UK; this will result in many bargains for the cash buyer.[:D]

[NormanH]

LeMonde has an analysis in French here

It begins (my translation)

"When London coughs, Sarlat catches a cold"

[Cat]

"Globalement, l'impact de la présence britannique sur l'économie du département est estimé à 260 millions d'euros annuels par la Chambre de commerce."

Wow!

(quote from LeMonde article linked to above)

[Sprogster]

P-D de Rouffignac, I think you will find that the credit crunch finally caught up with the Cote D'Azur property market in September, as an eighty per cent decline in activity is being reported since then, including the top end of the market. So at best that market has come to a standstill.

On the assumption that most purchasers of second homes use some element of bank finance, this market could take longer to recover, as most banks have stopped financing second home purchases and will currently not even allow borrowers to raise equity on their primary residence.

Even if foreign purchasers have cash to fund the purchase, more often than not on more expensive French property, they will seek to finance the purchase for French wealth and inheritance tax mitigation reasons, if they are sensible!

[woolybanana]

Duh, houses prices are falling because they are overpriced in current market conditions.

And, those foreigners (eg Belgians) buying are often rushing to remove and spend hot money from les paradis fiscaux before the greed of governments gets it.

[Sprogster]

woolybanana, I don't think many Belgiums will be investing hot money in France, bearing in mind the increasing exchange of tax information by the French Fisc, including C.I!. (Jersey and Guernsey will shortly be signing a Tax Information Exchange Agreement with France.) My guess is that sort of property investment goes to Dubai.

The current market conditions have arisen out of the credit crunch!

[anniefromwales]

The way I see it, what has happened is that the INVESTMENT property market has ground to a halt. People who are looking for a new home will still go ahead buy a house. It's the people who have been buying and selling property as a commodity, to make money, who are having to retrench. So areas where that happens a lot, e.g. Dordogneshire, will feel the effects first. Same as other commodities like grain and oil - and the shame of it is that commodity trading makes it hard for people who just want to get on with their lives in the real world, like farmers who want grain to feed their animals on, and it's the same with property.

[Sprogster]

The problem is anniefromwales, that even those who are looking to buy a new home are struggling to obtain finance, even with a good credit score. This is not only because the banks are reluctant to lend to anyone at the moment, but that surveyors preparing valuations for lending banks are being extremely cautious and it is not unheard off for valuations to come in 20% to 30% under the agreed sale price!  

[woolybanana]

The Belgian largely hid their money in Luxembourg but there has been a major crack down recently so they have been moving their illicit dosh quick.

[woolybanana]

Which is still far too high

[mint]

You're right, Wooly.  Until such times as I find one of these très belles affaires, as mentioned in the article, I'm leaving the money under the mattress.[:D] 

[Cat]

"Avec la chute de la livre sterling, la hausse du coût de la vie et les effets de la crise, ils sont nombreux à repartir chez eux"

Les Anglais disent bye bye au Sud-Ouest

[mint]

Where're you quoting from, Cat?  Perhaps, if there is an available link, you can post it and we can "Read All about It"!

"La chute de la livre sterling"..........so that's what it's called.  Will remember that if I were to find a suitable property and I try to knock down the price.

"Chute" sounds suitably catastrophic and leaves little room for misunderstanding, doesn't it?

[WJT]

[quote user="sweet 17"]

Where're you quoting from, Cat?  Perhaps, if there is an available link, you can post it and we can "Read All about It"!

"La chute de la livre sterling"..........so that's what it's called.  Will remember that if I were to find a suitable property and I try to knock down the price.

"Chute" sounds suitably catastrophic and leaves little room for misunderstanding, doesn't it?

[/quote]

Unfortunately, chute is probably putting it mildly.[:(]

[Clair]

[quote user="sweet 17"]Where're you quoting from, Cat?  Perhaps, if there is an available link, you can post it and we can "Read All about It[/quote]

Sweet, follow the link in Cat's post...

[5-element]

Sweet 17, click on "Les anglais disent bye-bye au sud-ouest" it's a live link.[:D] 

[mint]

Thanks, Clair.  LOL, why am I so dull that I don't even realise when someone as efficient as Cat provides a link?[:-))]

Edit:

Sorry, 5-e, posted same time as you did.  Read your contribution now and thank you.

[Clair]

Here is a similar article from the Telegraph: Number of Britons buying holiday homes in France falls by 50%

and Property in France: Cherchez La Maison