February sees largest home price increase in 20 years

Home prices rose by 10.4 percent last month compared to February 2020. This is the sharpest increase in home prices the Netherlands has seen in the past 20 years, numbers from Statistic Netherlands (CBS) and the Kadaster show.

The pandemic has not caused prices on the housing market to go down, CBS chief economist Peter Hein van Mulligen said to the ANP. It is even likely that house prices have gone up because people saved the money they would usually spend on vacations, he said.

Within the first two months of this year, 26 percent more homes switched ownership compared to last year. A possible explanation for the notable increase is the removal of the transfer tax for home buyers under the age of 35 as of January 1.

Home prices have been going up since 2013. In 2019, the increase leveled off slightly, however, prices began to rise again in 2020.

The demand for homes, especially outside the Randstad is high at the moment in the Netherlands. The mortgage interest rate is currently also very low, adding to the competition in the housing market.

Homes are most expensive at an average of 863 thousand euros in Bloemendaal in Noord-Holland. In the municipality of Pekela they are the lowest at an average of 164 thousand euros.