Average mortgage amount rising after 14 months of decline; Highest since April 2022
The average mortgage amount for purchasing a home rose by 4 percent in July compared to last year to 321,818 euros. That is the highest level since April 2022, according to figures from De Hypotheker. After 14 consecutive months of declines, a turnaround started last month, the mortgage adviser said.
According to De Hypotheker, this indicates that the housing market may be gradually recovering despite the rise in mortgage interest rates. The housing supply increased sharply: 29 percent more homes were listed for sale in the second quarter than in the previous quarter. Due to the higher transfer tax, home buyers also have less competition from investors, and more rental properties are being put up for sale.
The upturn in the housing market is also reflected in the number of mortgage applications, reported De Hypotheker. In the first quarter of this year, there was a 12 percent increase compared to the previous quarter. That incline continued in the second quarter with plus 17 percent.
“First-time buyers, in particular, get more perspective on a home,” said Menno Luiten, commercial director of De Hypotheker. Still, there is reason for caution. The Netherlands currently has a shortage of over 390,000 homes, an increase of almost 20 percent compared to a year ago.
Reporting by ANP