Dutch realtors selling fewer homes for more money

There is a considerable shortage of homes on the Dutch housing market. As a result, fewer homes are being sold for higher prices. And home sales are also happening faster and faster, according to figures released by the Dutch association of realtors NVM, NU.nl reports.

In the past quarter homes were sold within 40 days on average, 15 days less than a year ago and the fastest in 18 years, according to the association. NVM brokers sold a total of 36 thousand homes, 4,700 fewer than the same quarter last year. And the average sale price rose to a record level of 292 thousand euros in the third quarter.

This is the fifth consecutive quarter that the number of home sales was lower than the year before. In the third quarter of this year NVM brokers sold nearly 12 percent fewer homes than in the same period last year. The average sales price rose by 10.3 percent. A third of the homes sold in the third quarter were sold at above asking price. The average asking price was nearly 11 percent higher than the year before.

Of all the homes sold by NVM brokers in the third quarter, 6,600 were newly built, a decrease of 12 percent compared to the same quarter last year. Prices on newly built homes increased by 16 percent.

The housing supply fell by over 30 percent over the past year. NVM stressed that there are major differences per region. In rural areas there is still more supply than in cities. There is a shortage of new construction and the existing supply is increasingly being bought by investors. Another new trend the NVM is noticing, is that expats are increasingly buying a home instead of renting. "This gives the 'ordinary' buying candidates a disadvantage", NVM chairman Ger Jaarsma said.

The NVM expects that the housing market will tighten even further in this quarter. Jaarsma expects a decrease of 7 to 10 percent in the number of transactions, and an increase of 8 to 10 percent in prices.

On Budget Day the association called for a "structural and structured approach" to te housing market. NVM wants the government to make sure 1 million new homes are built in the Netherlands by 2030. "If that plan is not tackled quickly and thoroughly, the market will continue to fall into the vicious circle of declining housing supply and lasting price increases", Jaarsma warns.