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French Housing Bubble

Guess where housing has been hot, despite all the financial hullabaloo of recent years. Bien sur!

French housing prices have climbed 121 percent since 2000, with prices in Paris rising at the fastest pace. Home values saw only a minor fall during the financial crisis, and in 2009 they started rising again, according to an analysis by Danske Bank.

"We see signs of a bubble in the French housing market and would not be surprised to see French house prices declining 10-20 percent in coming years," Danske analyst Frank Oland Hansen wrote.

Recent economic problems and higher interest rates are finally creeping into the market, pushing home demand off and slowing down construction plans. Take a clue from the other side of the ocean, when your housing market is in the gutter, it’s hard to get your economy back on track.

Photo: Steven Puetzer | Getty Images