S&P sees deeper house price falls in eurozone as slump engulfs core – The Telegraph

  S&P sees deeper house price falls in eurozone as slump engulfs core – The Telegraph

“Downturns in the Dutch and French housing markets appear to be accelerating. We forecast nominal price declines of nearly 6pc and 5pc respectively this year as rising unemployment, decelerating wages, and the prospect of austerity measures frightens off buyers,” said Jean-Michel Six, the agency’s chief Europe economist.

France’s house market has been a bastion of stability through most of the global crisis but prices began to slip last year as President François Hollande embarks on a draconian fiscal squeeze to meet EU deficit targets, mostly by raising taxes. Home sales collapsed by 24pc in September from a year ago, the usual precursor of price capitulation by sellers.