Most home buyers now have to overbid again, real estate firm says

More than half of home buyers who made offers last month had to bid above the asking price to seal a deal, said real estate agency Makelaarsland based on internal data. It is the first time in almost a year and a half that home buyers have had to outbid with such frequency, at a time when the market is facing a crisis with too few homes being sold.

Some 56 percent of home buyers had to offer more than the asking price last month, said Makelaarsland. Just under 40 percent were able to purchase with an offer that was below the asking price. "In 2023, there were many bids below the asking price for a long time, but in recent months we have noticed a change again, which is now continuing considerably," said director Ivor Brevé.

As the market cooled off and the prices of homes began to slide earlier this year, home buyers were no longer in a position where they had to overbid. That changed when home sales prices on a monthly basis began rising again. Along with that increase, came an increase in the number of buyers willing to bid above the asking price.

Still, nearly 60 percent of home buyers were able to offer below the asking price for the entire 2023 calendar year, but that percentage dropped on a monthly basis, according to the real estate agency. Brevé said it will become more difficult to bid at or below the asking price, adding that the situation changes based on location and price range.

Mortgage advisory firm De Hypotheekshop also said last Friday that that overbidding has become more normal again in many cities. "Mortgage advisors in Utrecht and The Hague report that overbidding by 10 percent has already become the norm."

In October, the Dutch Association of Real Estate Agents (NVM) saw that competition in the housing market is increasing and that home seekers have to outbid more often