In 2007 it seemed that the subprime meltdown in the United States would have little impact on the housing market in France. Realtor organisations such as the FNAIM said that house prices were dropping slightly in the provinces but holding up well in Paris. Year on year increases per square meter would not be as high as in 2006.
Prospective buyers were negotiating hard on price. Real estate advisors found that they were having to manager vendor expectations and to advise vendors to post a lower sales price than they had expected to get only three months ago.
At the end of 2010 the situation is very different. Apartment prices in Paris are increasing at least 10% year over year. The reason for th