France: Financial Sector Assessment Program—Technical Note on Housing Prices and Financial Stability

July 1, 2013

Preview Citation

Format: Chicago

France: Financial Sector Assessment Program—Technical Note on Housing Prices and Financial Stability, (USA: International Monetary Fund, 2013) accessed November 21, 2024

Summary

This technical note examines housing prices and financial stability in France. The note highlights that sharply rising housing prices have caused concerns about mortgage credit risk and the stability of the financial system, particularly if the macroeconomic environment were to deteriorate further. France’s housing market proved resilient during the crisis, declining by about 9 percent from its precrisis peak before rebounding since mid-2009 to surpass its precrisis peak. This resilience has reflected a confluence of fundamental, macroeconomic, financial, and asset allocation factors that have caused the demand for housing to remain well in excess of supply.

Subject: Banking, Credit, Financial institutions, Housing, Housing prices, Loans, Money, Mortgages, National accounts, Prices

Keywords: BNP Paribas, Coverage ratio, CR, Credit, Debt service, Economic activity, Europe, Global, Home loan, House price, Housing, Housing loan, Housing prices, Interest deductibility, ISCR, Loan program, Loans, Mortgage interest deductibility, Mortgage market, Mortgages, Negative equity, Price condition, Société Générale, Sponsor bank, Volatility risk

Publication Details

Pages:

53
Volume:

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DOI:

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Issue:

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Series:

Country Report No. 2013/184
Stock No:

1FRAEA2013006
ISBN:

9781484380543
ISSN:

1934-7685

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