Mortgage data shows sharp increase in young home buyers
The number of young home buyers under the age of 35 increased by 40 percent in the months of March to May, compared to the same period last year. Almost a third of mortgage applications during the coronavirus crisis came from people in this age group, and the proportion of mortgage applications in the age group 25 and under even increased by 150 percent, De Hypotheker reported.
"The increase in the number of young home buyers is striking because for a long time it's been very difficult for starters to find an affordable home, especially in the big cities, because of the overheating housing market," said Menno Luiten, commercial director of De Hypotheker. "It seems that a turning point has arisen as a result of the corona crisis."
According to De Hypotheker, the sudden increase in young home buyers has a number of causes. The uncertainty about the consequences of the coronavirus crisis is one of them. Interest rates on mortgages seem to have bottomed out and the housing supply increased, by 10 percent in the four large cities over the past six months. "For the time being, house prices continue to rise as a result of the shortage on the housing market, but we see that this is now really starting to level off. Due to the growing supply, many starters now want to take their chance," Luiten said.
Many young people are also receiving some financial support from their parents, or have built up their own savings, which means they can afford the buyer costs involved in buying a home, De Hypotheker said. According to figures from the mortgage adviser, young home buyers between the ages of 25 and 35 put in an average of 22,500 of their own money for things like transfer tax, notary- and appraisal costs.
De Hyphoteker is pleased with this turn of events. "It is a positive development that they will get a foot in the door again and we hope that this trend will continue in the coming time."