French house prices remained relatively stable during Q3 2010, as the level of sales activity continued to increase, according to FNAIM.

The only regions of the country where house prices have risen are the Ile de France, Aquitaine, Provence Cote d’Azur and Brittany, whilst they have fallen in Lower Normandy, Picardie and Lorraine.

Century 21, one of the largest chain of estate agents in France, have also reported price increases in parts of the country, but are stating that prices continue to fall in some regions, notably in Burgundy by 5.9%, Auvergne by 4.5%, Lower Normandy by 2.27% and Champagne-Ardenne by 2.25%.

However in the towns and cities, and particularly in popular urban areas, demand simply exceeds supply, which is inevitably pushing up prices.

FNAIM have forecast an increase in prices of between 2% and 3% for 2010, a slightly more upbeat forecast than they made at the beginning of the year, when they felt prices could go either up or down by 2% or 3%. The main reason for the change in their forecast is due to the fall in mortgage interest rates, which, at an average of 3.3%, are at their lowest for over 50 years.