In July 2014, the demand for new dwellings decreases againQuaterly business survey in the real-estate development - July 2014

In July 2014, substantially more developers than in April indicate a fall in the demand for new housing. The corresponding balance of opinion remains significantly below its long-term average and has reached its lowest level since the series is (1991). Business managers forecast a decline in housing starts for sale and for rent for the next three months.

The demand for new dwellings decreases

In July 2014, substantially more developers than in April indicate a fall in the demand for new housing. The corresponding balance of opinion remains significantly below its long-term average and has reached its lowest level since the series is (1991). Business managers forecast a decline in housing starts for sale and for rent for the next three months.

Unsold dwelling stock increase

More developers than in April indicate a rise of unsold dwelling stock. So the balance of opinion is still sharply above its long-term average.

More developers indicate a drop in prices

In July, sharply more developers than in April 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 has degraded compared to the previous quarter. Far fewer developers than in April 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* Oct. 13 Jan. 14 April 14 July 14
New dwelling demand –8 –43 –43 –47 –53
Expected housing starts –6 –24 –18 –24 –38
- for sale –15 –30 –27 –36 –52
- for rent 1 –9 –8 –6 –17
Unsold dwelling stock tendency –27 –19 –13 –15 –9
Housing average price for sale 6 –21 –24 –22 –31
Downpayment –21 –46 –41 –39 –47
Financing capacity –23 –48 –42 –55 –40
  • * Mean since July 1991.
  • Source: French business survey real-estate development - Insee

Demand – New dwelling demand tendency