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

_IMF Staff Country Reports, July 1, 2013_

## Source details

**Canonical URL:** [France: Financial Sector Assessment Program—Technical Note on Housing Prices and Financial Stability](https://www.imf.org/en/publications/cr/issues/2016/12/31/france-financial-sector-assessment-program-technical-note-on-housing-prices-and-financial-40721)

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## Bibliographic details
- Published: July 1, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484380543.002

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### Summary of scope and purpose
- Examines housing prices and financial stability in France.
- Highlights concerns that sharply rising housing prices have caused about mortgage credit risk and the stability of the financial system, particularly if the macroeconomic environment were to deteriorate further.
- Notes that France’s housing market declined by about 9 percent from its precrisis peak during the crisis, then rebounded since mid-2009 to surpass its precrisis peak.
- Attributes the market’s resilience to a confluence of fundamental, macroeconomic, financial, and asset allocation factors that have caused the demand for housing to remain well in excess of supply.

### Key findings and observations
- Housing prices: decline of about 9 percent from precrisis peak, followed by rebound since mid-2009 to exceed precrisis peak.
- Drivers of resilience:
  - Fundamental factors.
  - Macroeconomic factors.
  - Financial factors.
  - Asset allocation factors.
- Risk channel emphasized:
  - Mortgage credit risk and broader financial system stability could be amplified if the macroeconomic environment deteriorates.

### Subject areas and keywords (as reported)
- Subject: Banking, Credit, Financial institutions, Housing, Housing prices, Loans, Money, Mortgages, National accounts, Prices
- Keywords: BNP Paribas, coverage ratio, CR, Credit, debt service, economic activity, Europe, Global, home loan, house price, Housing, housing loan, Housing prices, interest deductibility, ISCR, loan program, Loans, mortgage interest deductibility, mortgage market, Mortgages, negative equity, price condition, Société Générale, sponsor bank, volatility risk

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_Source: https://www.imf.org/en/publications/cr/issues/2016/12/31/france-financial-sector-assessment-program-technical-note-on-housing-prices-and-financial-40721_