There is growing evidence of a noticeable fall in house prices in many areas of France, according to the latest (Q3 2012) review by FNAIM, the national association of French estate agents.

Over the past few months estate agents and notaires in France have reported a slump of around 20% in the volume of sales and there has also been a similar fall in the number of new homes being built.

Although property prices have not fallen at such a fast pace yet, FNAIM reported that house had fallen by an average of 1.3% over the past year.

However, in some regions of France prices have fallen by as much as 8% in the past year, with greater falls in some outlying rural areas. According to FNAIM, the largest falls have occurred in Brittany (-7.9%), Lower-Normandie (-6.9%), Lorraine (-6.7%), Champagne-Ardenne (-5.6%) and Higher-Normandie (-4.9%).

With mortgage lending down by 30% over the past 12 months, further price falls are now widely expected.