3 January 2018

2018- n° 315

The rise of prices of second-hand dwellings and of the volume of transactions amplified in Q3 2017 Notaries-INSEE second-hand dwellings price index - third quarter 2017

In Q3 2017, the rise of prices of second-hand dwellings amplified: +1.6% compared to the previous quarter (provisional seasonally adjusted results), after +0.7%. As observed since the end of 2016, the increase is more important for flats (+1.9%) than for houses (+1.4%).

Over a year, the increase in prices continued to accelerate: +3.9% compared to Q3 2016, after +3.1% the quarter before. This increase was mainly due to prices of flats, which increased by +5.1% over the year, against +3.1% for houses.

In Q3 2017, the prices of second-hand dwellings in Île-de-France continued to rise: +1.6% compared to Q2 2017, after +1.2%.

Year–on–year, the rise in prices reached +4.8%, after +3.9% in Q2 2017 and +3.4% in Q1 2017. This acceleration came from a more accentuate rise in the prices of flats (+5.8% over the year, after +4.7%), especially for the flats in Paris which increased by 7.8% in one year. Yet, the rise in the prices of houses in Île-de-France also amplified (+2.7% after +2.1%).

In Q3 2017, the rise of prices of second-hand dwelling in provincial France was the same as in Île-de-France: +1.6% compared to the previous quarter.

Over one year, the prices increased less markedly than in Île-de-France, though an acceleration in Q3 2017: +3.6% between Q3 2016 and Q3 2017, after +2.7% in the previous quarter. Like in Île-de-France, the rise was more important for flats (+4.5%) than for houses (+3.1%).

In Q3 2017, the annual transaction volume continued to grow: in September, the number of transactions carried out over the last twelve months reached a new historical peak (952,000). This volume of transactions was thus significantly higher than the one recorded one year earlier (825,000 in September 2016). This represented a little less than 3% of the housing stock, which was equivalent to what was observed in 2006.

The second-hand housing price index is revised to include transactions recorded after the previous publication.

In comparison with the results released on 2 October 2017, the change in prices in Q2 2017 has been revised downwards by −0.1 point overall: −0.1 point for houses, −0.2 point for flats. The overall change in prices in Q2 2017 stands at +0.7%, instead of +0.8% (figure published on 2 October) and +1.0% estimated on 7 September.