Housing recovery on horizon: Rabobank

The Rabobank is counting on it that housing prices will rise this year. The bank's economic office is saying that sale homes will on average become between 0 and 1 percent more expensive this year, and between 1 and 3 percent more expensive next year, according to a report from the biggest mortgage office of the Netherlands. In the last quarter, Rabobank's economists were still of the impression that housing prices would be declining by 0.3 percent over 2014. They also expected that 120,000 homes would be sold. This estimate has now shifted to between 130,000 and 140,000. Rabobank notes an improved outlook on the trust in the housing market. Homes have become affordable due to the current favorable mortgage level and the year-long price drops. According to the Telegraaf, the first quarter of this year saw the best home sale numbers since 2008. The housing prices in the Land Registry were lower than a year ago, but Rabobank is expecting that the tipping point was reached this month, and that the housing prices will now increase lightly on a yearly basis. The National Realtors Association (NVM) say that homes are being sold for a higher price than a year ago, on the basis of their own figures for the first quarter. They are counting on a 2 to 5 percent increase on prices for 2014.