Dutch Housing Market Quarterly Dutch version
The third quarter of 2019 was dominated by higher sales and lower growth in house prices. However, this levelling off is slower than expected, partly due to lower mortgage interest rates and a persistent housing shortage.
Dutch Housing Market Quarterly Dutch version
The rise in house prices is slowing, as expected. Whereas house prices rose 9 percent on average in 2018, we expect an average rise of 6 percent in 2019 and 4 percent in 2020. Sales are expected to stabilize around 205,000.
Dutch Housing Market Quarterly Dutch version
Despite soaring Dutch house prices, on average now more than 300,000 euros, almost half of young adults with plans to move prefer to buy. But on average they can only borrow just over 60 percent of prices are currently being paid.
Dutch Housing Market Quarterly Dutch version
In 2018, prices of owner-occupied homes in the Netherlands rose on average 9%, which translates to roughly 25,000 euros for an average house. For 2019 we expect homes to become even more expensive, however we expect sales to decline further.
Dutch Housing Market Quarterly Dutch version
In the third quarter the number of sales declined yet again on the Dutch housing market, but prices rose with no less than 9.2 percent. In other countries though, including the UK, prices for owner-occupied homes are declining again. An omen for the Dutch market?
Dutch Housing Market Quarterly Dutch version
Just like in the first quarter fewer homes were sold between April and June 2018. Yet, house prices have increased rapidly in the same period. Decreasing affordability and accessibility of the owner-occupied market severely undermine buyer confidence on the housing market.
Dutch Housing Market Quarterly Dutch version
While we still expect house prices to increase substantially this year, sales activities seem to reached a turning point on the Dutch housing market. Hampered by an increasing scarcity of homes in almost all regions, we have adjusted our 2018 sales forecast from 250,000 to 235,000 homes, a decline of 3% compared to 2017.