Dutch housing market in equilibrium, but house prices to rise again in 2024
The Dutch housing market will soon be in equilibrium. This is because mortgage rates are rising, while house prices are in turn falling. If mortgage rates remain unchanged, real estate prices will rise again next year, according to real estate consultancy CBRE, de Telegraaf reports.
For those who would still like to buy a house in the Netherlands this year, this means that a home will again be about as affordable as it was in 2021, when interest rates were extremely low. This assumption is also shared by Rabobank economist Stefan Groot, who believes that 2023 will be the year when the Dutch housing market stabilizes. "Affordability is improving smoothly. We have had the biggest drop in house prices," he told the newspaper.
However, buying houses in 2024 could become more expensive if interest rates remain the same in the coming period. Whereby this can be compensated by rising tariff wages, allowing interested parties to bid more when buying a house.
Even though right now mortgage rates are steadily rising, and are about four times higher this year than when they bottomed out in 2021, that doesn't create problems for potential homeowners, even first-time buyers, De Teleegraaf reports. That's because home prices are currently falling enough to offset the higher interest costs.