Prices of second-hand dwellings rose much faster than rents and incomes in the 2000s

Prices of French second-hand dwellings rose continuously from the late 1990s to early 2008. Since 2000, this growth has greatly exceeded that of consumer prices, rents, and disposable income per household. The result has been higher personal contributions and longer loan durations for home-buyers, despite lower interest rates. Prices began to slow in early 2006 and declined in 2008 but started rising again in fourth-quarter 2009. The number of transactions concerning second-hand dwellings stayed at around 800,000 a year between 2000 and 2007, then dropped. It stabilized during 2009 then started climbing back, reaching just under 600,000 by year-end.