Property: Second Homes not Selling Well

The French property market is still going through difficulties

Prices of second homes have fallen sharply in 2014 regardless of the area …

The sales of second homes are getting less, find notaries, both on tourist coasts, where prices and sales volumes are lowered, and within the country where the market is really damaged.

In their latest memo on the economy, notaries of France note in recent months “price erosion that continues” in the older building , but with “strong regional disparities”. “This confirms that prices decline slightly in urban areas but more significantly since it moves away,” they observe. In particular, prices of second homes “have suffered sharp declines in 2014, irrespective of the sectors.”

Thus “the tourist coasts , sales volumes and prices are at half-mast and should remain so,” say notaries in France. Worse, “in inland areas, country houses of the price collapses,” they note.
Thus in the Creuse, prices have fallen by 50% since 2008. The situation is the same in the Morvan, the Périgord, or the Gers.

In Normandy and the Perche, prices fell by 20-25%, in the Luberon, the decline is about 10%. “The oversupply of goods in this category shows that this market is heavily affected,” note the notaries. “Remember that this is shopping” fun “, which some abandon failing confidence in the future, especially not knowing if such investment will ensure the preservation of their savings,” they analyze.

Thus, in the current economic climate, ” owning a second home is a luxury more than ever ,” say notaries, recalling that the owners do not benefit on average 42 nights a year. ”

For its part the real network Guy Hiccups (Nexity) developed earlier this year a “ranking of regions of second homes where the market goes down the more.”

The Centre region leads with a decline of 21.6% in the last quarter of last year, compared with a year earlier, to 1231 euros per m2. Follow the Basse-Normandie (-10.1% to 2372 euros per m2), the UK (-6.5% to 2,301 euros), the Provence-Alpes-Côte d’Azur (-6.5% in 4751 euros), the Rhône-Alpes region (-4.4% to 2458 euros) and the Loire (-3.4% to 2116 euros).

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