New housing: sales are resuming

Building permits issuance has experienced a 29.6% decrease between May and July 2009 compared to the previous year. (Paul Delort (Le Figaro)).

The 2nd quarter new housing sales rose by 29.6% in comparison to 2008 while building permit records are lessening according to the Department of Ecology.

A step towards recovery!
Approximately 28000 new homes in France were sold in the 2nd quarter representing a 29.6% increase over 2008 although there was a 5% sales slope this first quarter. However, the number of new homes arriving on the market is winding down compared to 2008 (-28.9%). By the end of June, the total amount of new build properties on the market was 22.9% lower than the end of June 2008.

As for building permits, the fall goes on. Building permits issuance fell by 29.6% between May and July 2009 compared to the same period a year earlier. Between April and June, there was a 32.3% decline compared to the same period last year. For Benoist Apparu, Housing State Secretary, these indicators still point out “steps toward recovery in a balancing market.” The 2nd quarter is indeed “showing a lift in sales resulting in housing sales stock shortenings”, he said.