“Downturns in the Dutch and French housing markets appear to be accelerating. We forecast nominal price declines of nearly 6pc and 5pc respectively this year as rising unemployment, decelerating wages, and the prospect of austerity measures frightens off buyers,” said Jean-Michel Six, the agency’s chief Europe economist.
France’s house market has been a bastion of stability through most of the global crisis but prices began to slip last year as President François Hollande embarks on a draconian fiscal squeeze to meet EU deficit targets, mostly by raising taxes. Home sales collapsed by 24pc in September from a year ago, the usual precursor of price capitulation by sellers.
Mr Six said the “affordability ratio” in France is still roughly 30pc above historic averages and credit is tightening. He expects French prices to fall a further 5pc in 2014, bringing the peak-to-trough decline to 11pc.
France’s house market has been a bastion of stability through most of the global crisis but prices began to slip last year as President François Hollande embarks on a draconian fiscal squeeze to meet EU deficit targets, mostly by raising taxes. Home sales collapsed by 24pc in September from a year ago, the usual precursor of price capitulation by sellers.
Mr Six said the “affordability ratio” in France is still roughly 30pc above historic averages and credit is tightening. He expects French prices to fall a further 5pc in 2014, bringing the peak-to-trough decline to 11pc.
