After years of skyrocketing prices, the housing market in the Netherlands may be cooling down. In the last quarter of 2018, one in five municipalities saw home prices decrease compared to the previous quarter, according to the quarterly report of valuation company Calcasa. The price decreases mainly happened in Limburg and Groningen, RTL Nieuws reports.
The Dutch housing market is still overheated, but is cooling down slightly in the most heated parts of the market, realtors association NVM concludes based on the sales figures for the last quarter of 2018. "In some regions and especially in Amsterdam we see that the ceiling of continuous price increases is slowly being reached", NVM chairman Ger Jaarsma said, NOS reports.
Amsterdam rose to the 5th place on Swiss bank UBS's ranking of cities with the highest risk of a house price bubble. In these cities home prices rose so fast compared to inhabitants' incomes, that there is a good chance that the housing market will collapse, Het Parool reports.
Hong Kong is first on the ranking, followed by Munich, Toronto and Vancouver. Amsterdam rose from 8th place last year to 5th this year, passing Sydney, London and Stockholm.
Existing owner-occupied homes in the Netherlands were 9.3 percent more expensive in August than in the same month last year, Statistics Netherlands and the Land Registry reported on Friday. The price increase was higher in August than in previous months.
ABN Amro expects that home prices in the Netherlands will increase by an average of 8.5 percent this year and 7 percent next year, instead of the bank's previous predictions of 8 and 5 percent respectively. According to the bank, interest rates will remain low for the time being, resulting in housing prices increasing faster than previously expected, ANP reports.
The cheapest homes in the Netherlands could be bought in Delfzijl last year, at an average price of 141,600 euros for a home. Bloemendaal was most expensive at 775.800 euros per home on average, over five times more expensive than in Delfzijl. The national average was 263 thousand euros per house, Statistics Netherlands reported on Thursday.
Existing home prices in the Netherlands increased by 8.2 percent in October, compared to the same month last year - the biggest increase since early in 2002, according to Statistics Netherlands and the Land Registry.
Housing prices in the Netherlands have been steadily rising since June 2013. The average price level of existing homes in October 2017, was at the same level as in May 2007. October's housing prices were still 4 percent lower than the price peak in August 2008, and 22 percent higher than the housing market low point in June 2013.
For the first time in ages, the housing prices in Amsterdam declined slightly. In the third quarter, housing prices were 0.5 percent lower than in the second quarter. "Maybe we have reached the top of the market", Sven Heinen, the chairman of Amsterdam real estate association MVA, said to the Volkskrant. This may well be the first sign that the overheated Amsterdam housing market is starting to cool.
In August the prices of existing homes in the Netherlands were 6 percent more expensive than in the same month last year - the biggest increase in 14 years, according to the Land Registry and Statistics Netherlands.
Credit raiting agency Moody's believes that home prices in the Netherlands will shoot up 5 percent this year, according to a report published on Wednesday. The agency attributes the price increase to both the recovering economy and a shortage in housing supply in certain parts of the market.
Home prices in Amsterdam increased by 9.7 percent last year, though the prices are still 3.6 percent below what they were before the crisis in 2008, according to figures released by Statistics Netherlands and the Land Registry on Thursday.
Home prices in Amsterdam increased with a massive 17 percent last year, the biggest increase in all of the Netherlands. The national average was 5 percent, according to figures released by the Dutch Association of Estate Agents and Valuers (NVM) on Thursday
The arrival of an asylum center in a neighborhood has no affect on the prices of surrounding homes, nor the time they spend on the market. The number of burglaries also do not increase more than the national trend.