Nearly half of Amsterdam homes selling above list price

A massive 48 percent of homes sold in Amsterdam in the first quarter of this year, sold for more than their listing price, compared to 42 percent in the last quarter of 2015 and a quarter a year ago, according to figures of Amsterdam real estate association MVA, FD reports. In popular neighborhoods like Weste, Oost, Zuid and Centrum, betwee 50 and 65 percent of homes are sold above the listed price. Buyers who do so, now pay an average of 6.2 percent more than asked, compared to 5.6 percent in the previous quarter. Sven Heinen of the MVA attributes this phenomenon to the extremely low interest rates. A study by ING's Economic Bureau believes that extra money that can be earned through Airbnb listings also plays a part. According to Heinen, the end to this current craze is not yet in sight. "Interest rates will remain low for a few years. I do not see that changing for the time being", he said to the newspaper. He believes that the bids above asking price will only increase in the second quarter.