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

International Monetary Fund

No 2013/184, IMF Staff Country Reports from International Monetary Fund

Abstract: 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.

Keywords: ISCR; CR; house price; home loan; BNP Paribas; debt service; housing loan; loan program; mortgage market; negative equity; Société Générale; sponsor bank; price condition; coverage ratio; economic activity; volatility risk; mortgage interest deductibility; interest deductibility; Housing prices; Loans; Mortgages; Housing; Credit; Global; Europe (search for similar items in EconPapers)
Pages: 53
Date: 2013-07-01
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
http://www.imf.org/external/pubs/cat/longres.aspx?sk=40721 (application/pdf)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:imf:imfscr:2013/184

Ordering information: This working paper can be ordered from
http://www.imf.org/external/pubs/pubs/ord_info.htm

Access Statistics for this paper

More papers in IMF Staff Country Reports from International Monetary Fund International Monetary Fund, Washington, DC USA. Contact information at EDIRC.
Bibliographic data for series maintained by Akshay Modi ().