Housing prices in the Netherlands were on average 9.7 percent higher in the third quarter than a year ago, realtors association NVM announced. "The housing market is overheated in many places, especially in the cities", NVM chairman Ger Jaarsma said to broadcaster NOS.
Housing prices in the Netherlands continue to rise. In March housing prices were 7.3 percent higher than in the same month in 2016 - the biggest price increase in 15 years, according to figures released by Statistics Netherlands and the Land Registry on Friday.
The current price level is still 8.6 percent below the housing prices peak of 2008, but 16.4 percent above the low point in 2013. The average house price is currently at the same level as in April 2006.
The Dutch housing market continues to recover and the recovery can now also be seen in areas outside the big cities and the Randstad, according to quarterly figures by realtors association NVM. Amsterdam is still in the lead when it comes to housing prices. The average price of a home in the Dutch capital was 20 percent higher in the first quarter of this year, compared to the same quarter last year. The national average home price increased by almost 9 percent, the Volkskrant reports.
The housing policy of the current Dutch government is creating a crisis, with the middle class bearing the brunt of the situation, according to TU Delft professor of housing Peter Boelhouwer and Karel Schiffer, former leader of NHG-hypotheek, the Financieele Dagblad reports.
According to these two experts, the housing market in the Netherlands today still faces a shortage of housing, the sale and rental sector hardly relate to each other and the steep rent increases combined with a decline in purchasing power is creating a "poverty trap" in the rental sector.
Since recording started in 1965, the mortgage rate has never been so low. For an average, 10-year mortgage, with National Mortgage Guarantee, the rate is now less than 3.5 percent, the NOS reports.
The Dutch housing market continues to improve and the fourth quarter of 2013 was the best quarter for the housing market since the beginning of economic crisis in 2008.