October 31, 2020

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Housing market declines little, prices rise

Housing market declines little, prices rise

According to the real estate association NVM, the housing market has so far suffered little to no failure to suffer from the Corona crisis. House prices rose 8.8 percent year-on-year in the last quarter, compared with the average home. That’s slightly less than the 9.6 percent increase in the first quarter. The average house now costs 335,000 euros.

Fifty-two percent of all homes were sold above price, and that percentage is higher than ever, according to the NVM. However, the number of sales decreased slightly by almost 4 percent compared to the second quarter of 2019. Real estate agents also note that people now want to sell their house more often before buying a new house.

“More opportunities for beginners”

Fewer people report visits than before, but there is still a lot of tightness in the housing market. “Although there are fewer buyers in the absolute sense, there are still outbids to get the desired property,” says NVM Chairman Hoes. “Now that interest from investors and expats is lower, start-ups and pass-throughs are getting more opportunities.”

The Real Estate Association says that because of the Corona crisis, there is not suddenly a large exodus from the city to the countryside, where you have more space. “We have continued to investigate this claim and conclude that Corona may have reinforced this development, but it is not new. Since 2013, the number of Randstad people in provinces such as Gelderland, Drenthe and Friesland has increased slightly.”

According to the NVM, buyers are much more in demand for an additional study, a balcony or garden.

“Price decline in 2021”

ABN Amro comes today and believes that the housing market will eventually be “affected” by the economy weakened by the Corona crisis.

The Bank expects prices to rise by 6 percent this year. By 2021, however, the Bank expects a slight decline of 2 percent.

Housing

There is a great housing shortage in the Netherlands. This deficit amounts to about 331,000 homes, the government recently calculated. Over the next ten years, 845,000 new homes will have to be added to prevent this deficit from rising further.

Partly because of the housing shortage, house prices have risen sharply in recent years. First-time buyers and middle-income earners in particular are struggling to find a suitable home.