In January 2014, the demand for new dwellings stays weakQuaterly business survey in the real-estate development - January 2014

In January 2014, developers consider the demand for new housing degraded. The corresponding balance of opinion remains stable and stays significantly below its long-term average. Business managers forecast an amelioration in housing starts for the next three months, linked to the improvement in housing starts for sale. Nevertheless, the corresponding balance of opi-nion remains below its long-term average.

The demand for new dwellings stays sluggish

In January 2014, developers consider the demand for new housing degraded. The corresponding balance of opinion remains stable and stays significantly below its long-term average. Business managers forecast an amelioration in housing starts for the next three months, linked to the improvement in housing starts for sale. Nevertheless, the corresponding balance of opi-nion remains below its long-term average.

Unsold dwelling stock might increase

More developers than in October indicate a rise of unsold dwelling stock. The balance of opinion is sharply above its long-term average.

More developers indicate a drop in prices

In January, more developers than in October, indicate a fall in average prices of new housing; the corresponding balance of opinion is again significantly below its long-term average. Their opinion about the downpayment to acquire a new dwelling is less degraded compared to the previous quarter. Fewer developers than in October, forecast a decrease in the financing capacity to purchase a new housing.

tableau1 – Building construction economic outlook

Balances of opinion, in %, SA
Building construction economic outlook
Mean* April 13 July 13 Oct. 13 Jan. 14
New dwelling demand –7 –49 –43 –43 –44
Expected housing starts –6 –30 –28 –24 –19
- for sale –14 –40 –45 –30 –27
- for rent 1 –16 –3 –9 –9
Unsold dwelling stock tendency –27 –20 –20 –19 –12
Housing average price for sale 7 –22 –26 –21 –25
Downpayment –20 –40 –43 –46 –42
Financing capacity –22 –62 –48 –48 –43
  • * Mean since July 1991.
  • Source: French business survey real-estate development - Insee

Demand – New dwelling demand tendency