The average price of vacation homes in France dropped in more than three-quarters of coastal towns and cities in 2015, says New York Times contributor Nick Foster. Homes on the Côte d’Azur and Saint-Raphaël dropped by 12.8%, and Hyères dropped 11.1%. In Saint-Malo, a walled town with a marina on the English Channel in Brittany, average home prices fell 11.4% in 2015.
But, the average existing home price in France increased by 1.3% in the 12 months ending May 31. But, says Foster, the low interest rates and high inventory that makes the primary residence market favorable did not apply to vacation homes. He writes:
"Second-home sales are a less urgent market,” said Thierry Thomas, a notary who helped draft a report on home prices from Notaires de France, an association for French notaries. “What we see is that vendors often do not need to sell and are not in a rush to do so, and so only drop their sales price slowly. But when prices of a critical mass of vacation homes start to drop in a given location, as happened in 2015 in Saint-Raphaël and Hyères, which are both classic French seaside resort towns, they can drop quite quickly, as vendors actively seek out buyers.” Fallout in currency markets from the British vote last month to leave the European Union isn’t helping sales either.
For the time being, cuts in asking prices of seaside vacation homes may mean that now is a good time to buy.