The Netherlands' housing market remains fundamentally strong
-
Loading... - Minna Virtanen
- 14 Oct 2022
- 85 Views
- 0 Like
- 0 Comment
The Netherlands’ house price boom continues unabated, buoyed by record low interest rates, and with supply unable to keep up with strong demand. The average purchase price of all dwellings continues to increase by 7.47% during the year to Q2 2022, following y-o-y increases of 8.9% in Q1 2022, 13.83% in Q4 2021, 15.33% in Q3, 12.29% in Q2 and 9.22% in Q1. On a quarterly basis, house prices increased 2.75% during the latest quarter.
Home sales falling amidst supply shortages
In the first seven months of 2022, the number of dwellings sold fell by 22.2% y-o-y to 107,722 units, following a 4% decline in 2021 and 7.7% growth in 2020, according to Statistics Netherlands (CBS).
The Dutch housing market remains tight. According to realtors’ association NVM, a potential homebuyer typically chooses between fewer than two residential properties and there is frequent outbidding – signs of market tightness. In the second quarter of 2022, 80% of all homes sold went for more than the asking price.
In Q2 2022, there were about 25,332 homes available for sale, up by 42% from a year earlier, according to NVM. However, the housing shortage in the Netherlands persists, with an estimated shortfall of about 200,000 units this year. Read More...
