Fall in home prices seems to have ended, mortgage expert claims
The downward trend in home prices seems to have stabilized since the peak last summer, de Hypotheekshop said on Thursday based on data from Hypotheken Data Netwerk (HDN). Homes have become cheaper, and it has become easier to buy a home. However, prices have decreased little to nothing compared to last year.
Statistics Netherlands (CBS) previously noted a monthly increase in house prices for July but reported a year-over-year decline. De Hypotheekshop, however, uses more recent data and indicates that house prices have now stabilized compared to last year.
The organization specializing in mortgage advice noted that for the second consecutive month, home sale prices have remained stable compared to the same period last year. This is due to the tight market combined with increased confidence in the housing market among buyers.
"More people want to buy a home now. Here and there I hear that people are overbidding again," said Martin Hagedoorn, mortgage expert at De Hypotheekshop. Overbidding is not as extreme as a year ago, he said in an interview with ANP.
Other factors also seem to play a role. These include wage increases, the higher limit on the National Mortgage Guarantee (NHG), policy measures targeting landlords, lower energy costs, and specialized mortgages for those relocating. As a result, people have more money to buy a home and can better compete with other home seekers.
Regarding mortgage applications, the numbers for August, which is a vacation month, are consistent with those from previous years. There has been recently an increase in mortgage applications for new home purchases. Additionally, as is customary during the vacation season, there has also been an increase in mortgage applications triggered by divorces.
