In the past three weeks, the average house prices in the Netherlands were 12% higher than in the same period last year. The recession caused by the novel coronavirus outbreak does not yet lead to a fall in prices. However, the number of homes sold fell sharply and more houses were up for sale. As a result, home seekers have had more freedom of choice for the first time in years. This is evident from the new monthly residential market barometer.
The number of homes sold is currently falling mainly due to practical problems. It is difficult for realtors to organize viewings and many potential buyers prefer to stay safely at home rather than to start house hunting. As a result, 43% fewer houses changed hands between March 23 and April 12 compared to the same weeks last year.
In the same period, 24% more new homes came onto the market. The number of ‘for sale’ signs increased by 12,500 to 62,500 in total. This means that after a historic dip, potential buyers will enjoy greater choice.
Now or never
It is striking that for the time being, house prices are continuing to rise. A house became on average 12% more expensive and the square meter price rose to 3,090 euros. "An explanation for the rise in prices could be the slight increase in mortgage interest rates," says Frank Verwoerd, head of research. "This can give people a ‘now or never’ feeling."
Overbidding in Amsterdam drops sharply
In the last three weeks, nearly half of the houses have been sold above the asking price. Homebuyers offered an average of 3,680 euros more to get a home. Last year, the sales price was still 820 euros below the asking price. However, there has been a downward trend since last week. Outlier is Utrecht, where households wanted to pay almost 11,000 euros more. In Amsterdam, on the other hand, there has been a sharp decline in recent weeks. In the capital, the outbidding decreased from almost 23,000 to 8,000 euros.
"Depending on the economic damage and unemployment, we expect house prices to change between plus 3% and minus 5% this year," Verwoerd says. "The current government interventions prevent an extreme decline as we saw in the period 2009 - 2013."
The residential market barometer is based on data from brokers of the most important organizations (NVM, VBO, Vastgoedpro), which covers approximately 95% of the market. In total, 20,000 house sales and 35,000 newly offered houses were examined.