Dutch housing market prices rebounding despite rising mortgage rates, experts say
The housing market in the Netherlands is rebounding, and house prices are once again on the rise, despite increasing mortgage interest rates, De Hypotheekshop said on Thursday. According to the mortgage advisory chain, broader market data indicates a 3 percent increase in house prices compared to the second quarter of this year. In many parts of the Netherlands, bidding above the asking price or buying without any resolutive conditions is becoming more common again.
The Hypotheekshop previously reported that the decline in house prices from earlier this year seemed to have halted. Statistics Netherlands (CBS) also recently observed house prices gently increasing for the third consecutive month compared to the previous month. According to CBS chief economist Peter Hein van Mulligen, house prices seem to stabilise after months of decline.
The Hypotheekshop also has its own mortgage data, covering roughly 8 percent of the market. The number of applications in the third quarter is approximately at the same level as the previous quarter.
"This confirms the rising trend that started in the first quarter of this year," the organization noted. They see an especially increased influx from housing market newcomers, but there is also a slight uptick in applications for renovations or individuals looking to buy their second or third homes.
The firm also noted that the proportion of apartments within housing sales is rising. "This shift seems to result from reduced interest from investors in rental properties due to higher mortgage interest rates and recent government measures. Many investors have been selling their apartments recently, providing an opportunity for newcomers to enter the market,” the advisory chain wrote.
The Hypotheekshop also pointed out that mortgage rates, which seemed to stabilize earlier this year after last year's significant surge, have begun to rise again this month. This increase comes from investors expecting central banks to maintain their policy rates higher for longer than previously expected. As a consequence, mortgage providers have resumed raising their interest rates.
Reporting by ANP