Dutch housing market definitely recovering: mortgage advisor

The housing market is definitely recovering, De Hypoheekshop reported based on data from parent company Ingage Franchise for October. Home prices rose 2.5 percent last month compared to October last year. Home buyers also made the most mortgage applications in over a year.

The average mortgage amount was 4 to 5 percent higher than in October a year ago, said De Hypotheekshop. In September, the mortgage advisor also saw that the housing market had picked up again and that home prices had risen despite rising mortgage interest rates. Higher interest rates have caused the prices in the housing market to fall slightly since the middle of last year. With a higher interest rate, buyers can borrow less for a home, but that is no longer causing prices to fall.

Overbidding on the asking price and purchasing without reservations are also becoming more common, De Hypotheekshop said. “As quickly as sales prices fell last year, the recovery has started just as quickly this year.” In recent months, Statistics Netherlands and the real estate agents’ association NVM also said homes have become more expensive again.

In October, mortgage interest rates rose further, according to De Hypotheekshop, especially in the first two weeks of the month. Mortgage providers seemed to realize that central banks would keep their interest rates high for a longer period of time, the mortgage advisor said.