Anyone know how the market is going right now in Drome and Provence? Seems house are sitting for ages on EA websites.

I live in the south. The market is dead. And very overpriced with foreign speculators. Has been stagnant for the last 6 months.
80% of buyers on the Riviera in 2007 have been from outside France. It's a bubble waiting to burst.

Wait another 12months and you'll get a better deal. Wait longer, and you might get a bargain.
Last house crash in the 90's saw prices fall on average 40%.
This time around may be worse (or better if you are a buyer)............

Do you think its the strengthening Euro thats doing this (stagnation)? We have a friend in Menton we stay with often. Seems already stuff in Menton has dropped a little but its still crazy expensive. We are looking for a townhome or similar in a town back a bit from the coast in between Nice and the Italian border.

Out of interest do you think the Menton to Nice coast is more overpriced or the Drome area. I ask because we feel we may get some rental return on the coast but virtually none in Drome.

Predictions are for an 18% national drop to 2010. Add in wage inflation in France of 2% and we are looking closer to 25%. Of course if the pound slides by 15% against the Euro which would make some sense on purchasing power parity you may be better investing now.

http://www.housepricecrash.co.uk/forum/ind...showtopic=58042

Thanks for the responses, I think we will hold on some and save some more.

Only think that scares me is currencys. We still have a lot in dollars as well as pounds and I am just not sure how they will fare against the Euro in the next few years.

I think Sarkozy's tax measures will do much to help the situation. A lot of activity in the economy, such as property purchases, are being postponed until his measures come into effect.

Sarko's tax measures for property have been watered down this month. He hoped to offer mortgage relief on houses. High Senate rules it could not be backdated pre-election , as it would be considered a bribe. (I agree).
Relief will only be offered to new purchases since July and the % will be tax-deductible for about 3 yrs I think?
Given the high prices in France, this will not be enough to push up the market, in my opinion.

If you're desparate to buy in the south of France, a couple of tips.

- Avoid new build flats anywhere > 300M from the coast.
- If buying a house, choose one that has been standing for > 15yrs. Lots of new developments will be of poor quality and may have problems in the future due to successive hot summers in recent years.
- Don't buy in a place where most other buyers/occupiers are non-French. These will be difficult to sell on as no locals would ever think of staying there (or could afford to).
- Don't buy with a view to rent out most of the year. The market is saturated with holiday flats. Even in high summer, there is now a lot of them lying empty.
-Final tip. Visit the property and the area for 1 week before you buy. Never buy via a brochure or website. There are lots of sharks on the coast, and most of them drive BMW's

Thanks for this, I think I am going to hold of a little, watch and observe. Very interesting about lots of vacant flats.

Latest news from the regional property observer (a sort of chamber of commerce) is that property is selling for at least 10% less than advertised in the EA's windows. In France, the EA price is usually the max. price wanted by the buyer and lower bids are not unusual. However, for the last 2-3 years, bids had been at the EA price.
This has now changed. If you really want to buy for the long term, I'd recommend bidding a min. of 10% under price. Maybe be a bit cheeky and bid 20% under to see if they bite. Or 30%, you never know !

A friend at a local bank reports the market has now stagnated. Very few people looking for a mortgage. This market will drop further , as we're now heading into the quiet season and EA's will struggle to generate business. Oh yes !

I'm going to hold for another 2 yrs at least. I reckon I'll be able to buy the villa with pool and olive trees, come 2010.......

Thanks for this, yes holding is a good idea, more time to save aswell. I am also thinking that the Euro will eventually decline a bit.

Out of interest is the regional property observer online?