Bricks
and Mortar
A monthly look at information and facts on buying property in the Languedoc
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This month sees the start of a regular column dedicated to the property market in the Aude and the Herault, intended to give the reader some current facts and figures, special focus on property types/area, and our personal comments and thoughts, based on 10 years’ experience selling property in both departments. Whether you are a buyer, a seller or someone who is just looking, we hope there will be something here to interest you each month.
Best then to begin by giving you an overview of the French property market today. The most current notaire report (October 2013, www.notaires.fr) shows that whilst there has been an overall price fall of about 1% nationwide, property prices in the Languedoc continue to rise, with Herault recording a 11.7% rise, the largest in the whole country! In terms of volume of sales, there has been a month on month increase in sales since March 2013, especially in the provinces.
The picture for the Languedoc property market is an ever improving one. With its reasonable cost of living and laid back lifestyle, great weather, excellent transport links and improving tourism, the region is fast becoming a property hotspot. As the economies of major countries worldwide improve, the region is attracting new potential buyers from Australia, Scandinavia and the US, in addition to the traditional British clientale.
On the ground, we are seeing a stabilising of prices and more importantly, offers being made closer to the asking price, and sometimes for the full asking price, both of which bode well for the health of the market.
The sector that is the most bouyant at the moment is properties in the 250,000€ - 350,000€ range. For this amount, you can get a 3/4 bedroom house with a garden and often a pool at the higher end. Properties of this calibre have the added advantage of being good investment properties for the holiday rental market and therefore buyers are perhaps happy to stretch themselves a little for the opportunity to gain immediate financial returns on their investment.
We fell for the charm and magic of the Canal du Midi when we moved from the UK to this region 10 years ago, and were fortunate enough to find our current home within walking distance of it.
This marvel of seventeenth century engineering, designed by Pierre-Paul Riquet, runs principally from Toulouse to Séte on the Mediterranean coast. It has become one of the Languedoc’s major tourist attractions - it alone accounts for one fifth of French river tourism - and was designated a UNESCO World Heritage site in 1996.
In the Aude and Herault, it passes through a number of picturesque villages, as well as town and cities like Carcasonne, Narbonne and Bèziers, all very popular with tourist and house hunters alike, due to its presence.
As agents, we are always being asked what villages we would recommend and our favourite villages are mainly canalside ones between Trébes and Bèziers, like La Redorte, Ventenac en Minervois, Le Somail, Salléles D’Aude, Argeliers, Capestang and Poilhes.
To us, the advantages of a canalside property are four-fold - firstly, canalside villages are often livelier, with more amenities, bars and restaurants to cater for tourism on the Canal, especially in the summer; secondly, the views (something that is on the wish list of most buyers) along the Canal are simply stunning, with its treelined towpath, stone bridges, locks, pretty houses and surrounding countryside; thirdly, it is protected from unsightly change or development, thanks to its World Heritage site status and; fourthly, the Canal does not overflow its banks, so there is no flooding risk!
Unsurprisingly, properties along the banks of the Canal are rare and extremely sought after and therefore more expensive than their central village counterparts. Properties with views of the Canal but perhaps not right on the Canal are just as popular but are more available and tend to be slightly lower in price.
In general, properties whether on the banks of the canal or in canalside villages will always be popular, and thus can be seen as good investments, with good re-sale values.
A recent article in LinkedIn entitled ‘It’s the Price that Sells a Home’ struck a chord with us, and though the article concerns the US market, it is just as relevant to us here in France. The crux of the article is that whilst factors such as location and condition are important, ultimately it’s the price that sells a property. Even the best house in the best location will not sell if it’s not priced correctly; even a bad house in a poor location will sell if the price is right. All too often we are asked to market properties for prices above our estimates. Our antennae always twitch when a client insists on an unreasonable price, then add that they are ‘not in a hurry to sell’! These sellers are expecting that ‘special’ purchaser to come along, ignore comparative evidence and buy the house despite the price.Buyers are very sophisticated these days and are able to study the market from their ipads on their sofas in East Sheen and by the time they get here they have spreadsheets, tick boxes, and their visits colour coded - if a property is above their budget ceiling or seems much more expensive than others, then they simply will not ask to see it. Also from the agent’s perspective, we are trying to make a sale - if viewings don’t happen or have dried up, it generally means that we are taking our precious buyers to similar but more reasonably priced houses where there is a better chance of securing a sale.Therefore, it is imperative that a lot of thought is given to the price - it is not enough to base your calculations on factors like purchase price or what you have spent on it or indeed what you need to buy your next house. Sometimes it is hard to be objective about something as subjective as one’s home. You need to take heed of factors such as demand for your type of property, what price other comparable properties are going for and generally what the market is doing at that present time. A well established estate agent can give you invaluable objective advice. Use their professionalism to your advantage. Fixing the right price is not a science, but there is an art to it and the best person to help you do that is your estate agent.
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