Housing market shortage continues though more homeowners looking to sell
The Funda Index, which reports the housing status in the Netherlands every month, reported a striking turn on the supply side in November. After a four-month downward trend, the number of homeowners intending to sell now seems to be increasing again.
The number of potential buyers is, however, still significantly larger than the number of potential sellers. The shortage on the market thus persists. That does not mean that buyers are less active. Yet, they do make concessions on matters such as price and outdoor/indoor space in order to have a chance at scoring a house.
Quintin Schevernels, CEO of Funda, says that “although the intention to sell seems to be increasing for the first time in months, the market remains very tight.” A poll shows that 52 percent of people looking to buy a house think that they will have little chance of success in the current market.
“Competition plays the biggest role in this, especially among first-time homeowners and consumers with a budget up to € 400,000,” says Schevernels. Numbers show that competition has increased in this area.
Schevernels adds that this leads to concessions being made. “69 percent of consumers who expect to succeed, think that it will only work if they adjust plans. That actually means that most consumers in this market find a house that is different from what they were originally looking for.”
Housing preferences are not the only aspect that has been affected by the coronacrisis. The Funda Index shows that timing has changed as well. About half of consumers want to change their buying or selling plans as a result of a change in working habits, as people are working from home.
For both buyers and sellers, this has mostly led to a push forward on their agendas. A small number have decided to postpone their plans due to the pandemic. Schevernels says that the push forward is still following existing trends in the market. “It is still far too early to say that a less tight market is in sight. But if this continues, it could provide some relaxation on the market,” he adds.