Dutch home prices increasing again; Slight rise for second consecutive month
Prices of owner-occupied homes rose slightly last month compared to June, Statistics Netherlands (CBS) reported. It was an increase of 0.5 percent in July after prices also rose slightly on a monthly basis in June by 0.2 percent. That means Dutch house prices are bouncing back somewhat after months of falling.
Compared to July last year, prices were still 5.5 percent lower last month. Another factor is that house prices peaked last year, after which homes quickly became cheaper. The CBS figures also show that 9 percent fewer homes changed hands last month than in the same month last year.
The rapidly rising mortgage interest rates mainly caused the fall in house prices in recent months. As a result, home buyers could borrow less, which pushed prices down. But De Hypotheker found at the beginning of this month that the average mortgage amount in July was at its highest point since April 2022. That marked a turnaround after 14 consecutive months of declines, the mortgage advisor said.
Consultancy agency IG&H has also noticed such a turnaround, noting that the total turnover in the mortgage market rose by 5.6 percent on a quarterly basis to 25 billion euros in the second quarter. According to IG&H, this has “broken through” the decline that started after the mortgage turnover reached a record high in the second quarter of last year. First-time buyers, in particular, took out a mortgage more often, according to the agency. These accounted for a turnover increase of more than 13 percent.
The Dutch Association of Realtors (NVM) reported at the start of last month that the housing market seemed to be recovering. “The dynamism is back in the housing market,” said Lana Gerssen, chairman of the NVM’s housing department.
According to the brokers’ own figures, an owner-occupied home cost an average of 410,000 euros in the second quarter, 2.8 percent more than in the first three months of 2023. That was almost 9 percent less than a year earlier.
Reporting by ANP