3 July 2017

2017- n° 142

Further of the rise in the prices of second-hand dwellings and in the volume of transactions in Q1 2017 Notaries-INSEE second-hand dwellings price index - first quarter 2017

In Q1 2017, the prices of second-hand dwellings kept increasing: +1.9% compared to the previous quarter (provisional seasonally adjusted results). The increase is virtually similar for flats (+1.9%) and for houses (+1.8%).

Over a year, the increase in prices was confirmed and strengthened: +3.0% compared to Q1 2016 after +1.5% the quarter before. This increase was larger for flats (+3.4%) than for houses (+2.6%).

In Q1 2017, the prices of second-hand dwellings in Île-de-France continued to rise: +1.8% compared to Q4 2016, after +0.4%.

Year-on-year, the rise in prices continued to strengthen: +3.8% compared to Q1 2016, after +2.6% and +2.0%. This rise was mainly buoyed by the prices of flats (+4.5%), especially for the flats in Paris which increased by 5.5% over a year. The prices of houses in Île-de-France also increased, albeit less markedly (+2.4%).

In provincial France, the prices of second-hand dwelling rose by 1.9% between the fourth quarter of 2016 and the first quarter of 2017.

Over the year, prices were still increasing, but in a less markedly than in Île-de-France: +2,6% between Q1 2016 and Q1 2017. Unlike in Île-de-France, the rise was similar for houses (+2.6%) and for flats (+2.5%).

In Q1 2017, the annual transaction volume continued to grow: in March, the number of transactions carried out over the last twelve months reached the historical level of 881,000. This volume of transactions was thus significantly higher than the one recorded one year before (809,000 in March 2016), and than the high level of December 2016 (845,000). This level has been reached in a context of trend growth in the number of existing dwellings (around +1% on average per year for thirty years).

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

In comparison with the results released on 3 April 2017, the change in prices in Q4 2016 has been revised downwards by −0.1 points overall (−0.3 for flats, −0.1 for houses). The overall change in prices in Q4 2016 stands at +0.4%, instead of +0.5% (figure published on 3 April) and +0.7% estimated on 23 February.