ING forecasts record Dutch home sales this year

The number of home sales in the Netherlands is expected to reach an all-time high of about 245,000 sales this year, according to ING. The bank attributes the rise to the continued high volume of former rental properties coming onto the market. The growing financial capacity of buyers is reportedly also a factor. The larger supply is expected to limit the rise in house prices to roughly 3 percent this year.

The 245,000 sales would surpass the previous record of 242,000 set in 2017. Last year, 239,000 homes changed hands. The bank anticipates sales will return to around that level in 2027 as fewer rental properties are expected to be sold.

Demand for homes remains strong because of an overall housing shortage. The projected 3 percent increase in house prices marks a sharp slowdown from last year, when average home prices rose 9 percent. Next year, ING expects prices to climb 1.5 percent.

Higher mortgage rates and more negative sentiment among potential buyers are also restraining price growth. At the same time, rising wages among buyers are helping sustain enough demand so that homes continue to increase in value, though at a slower pace.

First-time buyers are putting more of their own money into purchases, ING reports. The municipalities are also said to be offering financial support more frequently.