PARIS -(Dow Jones)- Residential property prices in France were down 9.8% in the first quarter of 2009 from the same period a year earlier, real estate association FNAIM said Tuesday.
Home price data released by FNAIM excludes new properties.
FNAIM pointed out that the downward trend has experienced a slowdown in the first quarter, with a 1% drop of prices on quarter. Prices dropped 6.5% over the last three months of 2008, compared to the previous quarter, FNAIM also said.
"However price resistance should not overshadow the downward trend which began in 2008" due to the financial crisis and the worsening of economic conditions, FNAIM added.
The downward trend also shows a break from the stabilization trend observed between 2004 and 2008, FNAIM said.
FNAIM expects a 5% to 10% drop in prices for the full year of 2009 compared with 2008, which would lead existing home sale prices back to end-of-2004 levels.
