Dutch Home Prices Increase by 0.6% in September

Discover the latest report on Dutch home prices showing a 0.6% increase in September. Find out more about the current market trends and fluctuations.

Owner-occupied homes in the Netherlands saw a slight increase in prices last month compared to the previous month, according to a report by Statistics Netherlands (CBS) and the Land Registry. The data revealed that in September, buyers paid 0.6 percent more for a home than in August, marking the fourth consecutive month of price increases. On average, buyers spent 422,175 euros on an existing house in September. However, prices were still 3.5 percent lower compared to the same period the previous year. Moreover, the number of homes sold decreased in September, with a total of 16,089 homes being sold, representing an 8.7 percent decline compared to September 2022.

Dutch Home Prices Increase by 0.6% in September | Latest Report | ogusyis

The housing shortage in the Netherlands has contributed significantly to the rising prices of owner-occupied homes in recent years. However, the trend was reversed last year, largely due to a significant increase in mortgage interest rates, which resulted in reduced borrowing capacity for prospective buyers. Since June, however, prices have been on the rise again, indicating a possible end to the previous decline. CBS chief economist, Pieter Hein van Mulligen, stated last month that the price decrease appeared to be a thing of the past, as the impact of increased interest rates was no longer significant. Testimonies from real estate agents and home seekers further confirm the increasing cost of homes in the market. The realtors' association NVM recently reported an intensifying tightness in the housing market, with buyers having to consistently outbid asking prices.

The urgent need for more housing in the Netherlands has been a recurring concern raised by experts. The country continues to face a substantial housing shortage, and the market conditions reflect this reality. Despite this, Klaas Knot, the president of De Nederlandsche Bank (DNB), suggests that a new decline in house prices cannot be ruled out. In a conversation with the ANP, Knot stated that while prices may rise for a few months, they could potentially drop again afterward. However, he stressed that a "dramatic fall" in house prices was not anticipated, citing the robust financial position of Dutch citizens. He highlighted the fact that unemployment rates remain remarkably low, ensuring stable employment and income levels for most individuals.

In conclusion, owner-occupied homes in the Netherlands experienced a slight price increase in September compared to the previous month. The ongoing housing shortage has been a significant contributing factor to rising prices, which started to decline due to higher mortgage interest rates the previous year. However, prices have been on the rise since June, indicating a potential stabilization in the market. Nevertheless, experts warn that another decline in house prices cannot be ruled out entirely. The need for more housing supply in the Netherlands remains a pressing issue, and experts emphasize the importance of addressing this shortage to establish a more balanced housing market.