3 April 2018

2018- n° 40

The prices of the second-hand dwellings and the volume of transactions were still increasing in Q4 2017 Notaries-INSEE second-hand dwellings price index - fourth quarter 2017

In Q4 2017, prices of second-hand dwellings accelerated slightly: +1.0% compared to the previous quarter (provisional seasonally adjusted results), after +0.9%. As observed since the end of 2016, the increase was more important for flats (+1.2%) than for houses (+0.9%).

Over a year, prices continued to accelerate: +4.0% compared to Q4 2016, after +3.3% the quarter before. This increase was mainly due to prices of flats, which increased by +5.0% over the year, against +3.2% for houses.

In Q4 2017, the prices of second-hand dwellings in Île-de-France continued to rise: +1.1% compared to Q3 2017, after +1.4%.

Year–on–year, the rise of prices reached +5.1%, after +4.6% in Q3 2017 and +3.9% in Q2 2017. This acceleration continued to come from a more accentuate rise in the prices of flats (+5.9% over the year), especially for the flats in Paris which increased by 8.6% in one year. Yet, the rise in the prices of houses in Île-de-France also amplified (+3.3% after +2.5%).

In Q4 2017, the rise of prices of second-hand dwelling in provincial France increased by 1.0% compared to the previous quarter.

Over one year, the prices increased less markedly than in Île-de-France, though an acceleration: +3.5% between Q4 2016 and Q4 2017, after +2.7% in the previous quarter. Like in Île-de-France, the rise was more important for flats (+4.2%) than for houses (+3.1%).

In Q4 2017, the annual transaction volume continued to grow: in December, the number of transactions carried out over the last twelve months reached a new historical peak (968,000). This volume of transactions was thus higher than the one recorded one quarter earlier (951,000 in September 2017). Compared to the stock of available housing, which increases by around 1% per year, the proportion of transactions became equivalent to what was observed in the early 2000.

The second-hand housing price index is revised to include observations recorded after the previous publication. In comparison with the results released on 3 January 2018, the change in prices in Q3 2017 has been revised downwards by −0.4 points overall: −0.4 points for houses, −0.4 points for flats. The overall change in prices in Q3 2017 stands at +0.9% compared to Q2 2017, instead of +1.3% (figure published on 3 January 2018) and +1.6% estimated on 30 November 2017.