Best French Mortgage

Since the 1st quarter 2009 we’ve been forecasting that something exciting may be about to happen in the French property market. A conjunction of very low property prices, historically low mortgage rates, a terrific selection of property and the first predictions that the end of the 2009 recession is in sight was bound to shape property market sentiment.

We’ve been advising our clients to bring forward their French property purchase plans because this situation is not going to last long and by end 2010 the real bargains will have disappeared as the market slowly lurches back to business as usual. Last weekend we were surprised to see a full page article in the Guardian (UK) substantially agreeing with our analysis.

Now we see in one of Frances most prestigious papers, Le Figaro, that the Deauville property market has been stunned by the emergence of the dreaded sellers strike. In this well heeled corner of France some owners are deciding that at these property prices, and with returns on cash so low, they are going to withdraw their property from the market and wait. «Les gens n’ont pas besoin d’argent. On voit même, ces temps-ci, quelques biens retirés du marché». Anecdotally, we know that our local (Pays d’Auge) estate agent’s advice to her clients since March has been “If you don’t need to sell urgently, let’s take the property off the market for a while”. So it looks as though this trend will establish itself across France in the next few quarters, at least in the most desirable areas.

So what does a French property seller’s strike change? Simply it adds the detonator of a declining supply of quality French property to the already explosive mix of low French property prices, very low mortgage interest rates and the availability of French mortgage funds.

Clearly we’re not just about to see a return to the French property market of 2007 and 2008, far from it. What we will see is that the buyers who’ve been “keeping their powder dry” to buy at the low point in the market are just about to miss the boat.

The next development we’re expecting is that French mortgage demand will begin to run ahead of supply and if you’re a recession hit lender, that will look like a good opportunity to edge mortgage rates upward. So our advice is if you’re thinking of buying contact us now for the best fixed rate French mortgage offers before the rest of the French property market figures out what’s happening.

In today’s French mortgage market it is vital to understand the latest French mortgage market trends in order to choose the best French mortgage product for your needs. Because your French mortgage could have a life of up to 25 years it is vital that you take a long term view of the French mortgages on offer and not be seduced by a short term French mortgage product promotion. To help you understand the longer term direction of the French mortgage market trends the Best French Mortgage team’s two post graduate economists provide a monthly commentary on the French mortgage market trends.

Visit our updated French Mortgage Market Trends page.

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