Dutch home sales prices fell by worst-ever 9 percent in one year, agents say

Housing prices in the Netherlands plunged by 8.9 percent from the peak of about 451,000 euros set in the second quarter of 2022. Now one year later, the sales price of an owner-occupied home averaged 410,000 euros, according to an analysis of the housing market by realtor association NVM. The decline is the sharpest ever measured by the organization, a spokesperson told newswire ANP.

Despite the year-to-year reduction, housing prices rose by 2.8 percent compared to the first quarter of the year, when preliminary figures put the average sales price at about 395,000 euros. "This quarter, 29% more homes were put up for sale than in the first quarter. However, due to the many transactions in the second quarter of 2023, the choice for consumers has decreased," the NVM wrote in a statement. "The tightness in the owner-occupied housing market is therefore increasing somewhat."

An estimated 34,000 owner-occupied homes were sold last quarter, an increase of 20 percent compared to the first quarter of the year. On average, it took 35 days for a home to be sold after it was listed. This was a full week faster compared to the previous quarter. These improvements could also be the result of seasonal changes, with the real estate market traditionally picking up steam in the spring.

Existing home sales prices were down compared to a year ago regardless of the style of home. Apartment sales dropped by 9.4 percent to 342,000 euros. Terraced homes were sold for an average of 374,000 euros, down 7.1 percent in a year. Corner homes sold at 397,000 euros, down 8.4 percent.

Semi-detached homes were valued at 438,000 euros, a fall of 9.8 percent. Fully detached houses were sold at 589,000 euros, an 11.1 percent fall. Despite the annual falls, each category showed an increase compared to the first quarter.

About 39 percent of homes also sold for above the asking price in the second quarter, compared to 82 percent last year. On average, existing homes sold for about 0.5 percent below asking price. Fewer than a third of homes sold above asking last quarter. There has been a steady increase in sellers pulling homes off the market as well, either because of a lack of interest or because offers have been too low.

The sale of new construction homes also fell from an average of about 482,000 euros a year ago to 468,000 euros this year. Interest in new construction fell sharply since the start of the war in Ukraine, the rapidly rising interest rates that came about to slow inflation, and the impact it had by depressing real estate prices. Previously, analysts have said that homebuyers feared the premium they would pay on new construction would be lost, and they would potentially be stuck with an underwater mortgage.

“The increased supply of cheaper homes is exactly what buyers are waiting for. Last quarter we were very concerned about developments in the new-build market. Now sales are picking up somewhat and supply is also increasing, especially in the lower price ranges," said Lana Gerssen from the NVM. "Newly built homes have lower energy consumption and score well on sustainability and lower maintenance costs. There is a demand for that."

The most popular new construction homes ranged in price from 250,000 to 400,000 euros, which saw strong quarterly growth, the NVM said. About 20,000 new construction homes were put on the market last quarter, up 79 percent in a year to the highest levels seen since 2015.

"The demand is still clearly greater than the supply," Gerssen continued.