Home Real Estate ‘Madness’ over: house prices drop almost 6% in three months

‘Madness’ over: house prices drop almost 6% in three months

by Ozva Admin

Photo: DutchNews.nl

The median home sold 5.8% less in the latest financial quarter than it did between April and June, according to figures from estate agents association NVM.

Its agents’ third-quarter results are the first strong indication that the Dutch property market is falling, after months of strong growth. figures of the CBS The Dutch statistics office, which measures all sales at completion, indicated a price drop of 0.1% from July to August.

The quarterly price drop recorded by the NVM is the steepest it has ever measured in such a short period.

end of 2021 the NVM, which tracks homes sold by its licensed agents, said home prices were growing 21.5% year-on-year. That year-over-year growth has now slumped to 2%.

Supply

Eighty percent more homes are on the market with NVM realtors now than a year ago, with listings growing from 16,796 to 30,239. Approximately the same number of homes sold in the third quarter of 2022 as a year earlier, around 32,500, and the average price was €425,000.

However, compared to historical levels, there are still relatively few houses on the market, while the Netherlands has a housing shortage in general, including social housing and private rental housing.

However, in some areas, NVM agent prices have fallen year on year, including in IJmond and around Haarlem. In the last three months, house prices have fallen by around 8.5% in these two areas; There have also been marked price drops in the Amsterdam metropolitan area (-7.6%), around The Hague (-6.9%) and in Utrecht (-6.4%).

Prices per square meter in the third quarter ranged from an average of €2,315 in East Groningen to €6,399 in the Amsterdam metropolitan area. The average price per square meter across the country fell 5% from the second financial quarter of this year.

Homes for sale with NVM brokers in the last five years Image: NVM/brainbay

Craziness

The NVM said the property market was returning to normal, with mortgage interest rates quadrupling to more conventional levels of more than 4%. Lana Gerssen, Vice President of NVM, said in a statement: “The figures for the third quarter of 2022 indicate that the extremely overheated market of the last year and a half has reached a tipping point.

“The quarter-on-quarter price decline we have measured is relatively modest, compared to the extreme rises in recent quarters. However, we are still far from a normal market since the supply, both in terms of number and types of housing, is insufficient. The influence of rising mortgage interest rates, skyrocketing energy costs and inflation is taking the craze out of the market.”

He added: “Although the supply in the real estate market is growing, so is the number of homes and the demand for homes… with a current shortage of more than 300,000 homes.”

Figures provided by NVM to Dutch News show that the number of homes for sale with its member agents has varied wildly over the last 10 years, from around 180,000 a decade ago, to a low of around 15,500 at the end of 2021 – the average it’s around 84,000.

Young man

However, current market segments are seeing better levels of interest. Some mortgage lenders have reported a increase in people up to 35 years old who take out a mortgage in the third quarter of this year.

Delaware hypothetical The broker suggested they could take advantage of the stamp duty holiday and the chance for parents to gift them €106,671 tax-free for a house this year alone.

CBS Figures for all houses sold in September it will be available at the end of October.

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