IEIF France and European Property Prices: April 2011

One of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe increased during April rising roughly 25% above the level seen a year earlier.

IEIF France and European Property Prices: February 2011

One of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe increased during February rising 12.3% above the level seen a year earlier.

IEIF France and European Property Prices: January 2011

One of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe increased during January at annual rate of about 14%.

IEIF France and European Property Prices: November 2010

One of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe declined during most of November but now appear to be climbing a bit and continuing to increase at annual rate of about 11%.

IEIF France and European Property Prices: October 2010

One of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe went flat during October while continuing to increase at a slower annual rate of 11% and remaining well below the level seen during the peak of 2007.

IEIF France and European Property Prices: September 2010

As I have noted before, one of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe increased notably during September increasing at an annual rate of 12.28% though still remaining far below the level seen during the peak of 2007.

IEIF France and European Property Prices: August 2010

As I have noted before, one of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe declined slightly during August but still remained slightly higher then levels seen a year ago.

IEIF France and European Property Prices: June 2010

As I have noted before, one of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe went flat in June but still remained notably higher then levels seen a year ago.

This may offer more evidence that what appeared to be a property price recovery of sorts throughout 2009 might have faltered as a result of the recent European debt crisis and may foreshadow more trouble to come.

IEIF France and European Property Prices: May 2010

As I have noted before, one of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

The latest data from the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, suggests that property prices in France and Europe declined sharply in May dropping roughly 16% and 12% respectively during the month but still remaining notably above the levels seen a year ago.

This significant change is what appeared to be a recovery of sorts could be the sign that credit conditions are tightening as a result of the recent European debt crisis and may foreshadow more trouble to come.

IEIF France and European Property Prices

As I have noted before, one of the most interesting and damming bits of evidence that tipped many off to the existence of a significant real estate bubble during the early 2000s was the fact that dramatically increasing property prices were occurring in most industrialized nations.

The U.S., U.K., France, Ireland, most of continental Europe, Canada, Australia and elsewhere were all simultaneously experiencing significant property booms thereby thwarting, more or less, many of the “limited supply” and “Superstar Cities” arguments that sought to justify individual regions explosive appreciation.

Today we know that this massive boom in real estate was more a function of financialization and credit availability rather than fundamentals.

One of the better outcomes of this period is that there is now much more attention being directed to property markets demanding better analysis and sponsoring a host of new and novel data for tracking individual property markets.

On that note, the Institut de l'Epargne Immobilière et Foncière (IEIF), a French research and analysis firm, has introduced a new catalog of daily and monthly property prices indices for France, Europe and the Eurozone.

As you can see from the chart, the early 2000s was an exception period of property price appreciation culminating in a “blow-off” peak in early 2007 as the leading edge of the sub-prime crisis ripped through the credit markets.

Similarly with the U.S. and U.K. markets, the France and Europe indices indicate that the initial vicious price slide hit a low in early 2009 and since have trended up.

It will be interesting to see how each region now trends as the U.S. has clearly started to weaken in recent months and the U.K. appears to be following suit.

Relative Quality and an Import-Export Decline

The French expect quality… or at least higher quality than I’m used to in the U.S.

A 2 euro bottle of wine picked up on impulse at the supermarche is still a tasty treat… think of that… I’m pretty sure that even a bottle of Ripple cost you more than $2.83… especially adjusted for inflation.

Yet I suppose the simple fact is that no one here in France knows the difference… they still have a patisserie, a boulangerie, a bucherie, a fromagerie on virtually every block.

We would call them specialty shops in the U.S. … here they are not very special at all.

Times may be changing a bit though… I notice more Starbucks and more golden arches here in Paris… Is this simply to make the Yanks feel more at ease?

One would hope.

On that note… looks like French imports to the U.S. have taken a pounding along with all other forms of consumption.

Exports to France have held up a bit better… but as you can see… it’s still pretty early in a declining trend that will likely take a few years to bottom out.

Blogging in the Here and Now

I’m spending the rest of the summer in France and I have to say that this stay will be a well earned respite.

Although I’ve been here many times (… the wife’s maternal homeland), I’m still awestruck by the sheer mass of stone and iron that is Paris and also, from what appears to an Americans eye, the simply tremendous investment made in the more typical structures in the countryside.

It seems the French have never known clapboard on wood frame construction or ever met a single asphalt shingle.

Each and every home and building seems as though it had been either painstakingly carved into place or, for the half-timbered medieval towns and other olden relics, assembled by the ancients and then meticulously preserved ever since.

This obviously all comes at great cost but the quality of the product is without question.

So this has me wondering…

Clearly, we think shorter term in the United States.

Why invest in a slate roof for a home you may only intend on living in for 5 years? Why build a stone foundation when cement is cheaper and simpler to install and maintain?

This is just simple sensible cost-benefit analysis and it appears that in France they have no notion of it.

Of course, this is not exactly a fair comparison as I’m talking about two totally different societies.

Americans clearly put a practical priority on immediate “return on investment” as well as a higher value on mobility, both geographic and social.

It’s an “aspirational” process whereby the thoughts of our own “American Dream” form the basis for our actions in the here and now… always a step away from a move to a better job, a better home, a better area… better days.

Possibly the French are not as concerned… they appear to simply live in the here and now.

My wife reminds me that even in Paris, many boutiques are closed for two hours a noontime.

I noticed a sign in the window of a brasserie declaring that the proprietor is away but will return to reopen the establishment in late August.

No doubt the actual output of the French economy is below potential.

But… you only live once!