Housing full steam ahead – Financieele Dagblad (Registration)

The housing market has shown strong recovery in the second quarter on nearly the full width. Even in rural areas, the number of sales, and prices are rising. This seems to put an end to the split in the market which were made more sales exclusively in the Randstad. This enables the Dutch Association of Estate Agents (NVM), which represents about three quarters of the market.

Halved drop

The price of an average home increased in the past three months by 2.6% compared to the first quarter, to € 224,000. It is according to the NVM for the first time since 2001 that a quarter-on-quarter increase was so large. Compared with the peak of the market in August 2008, the price decline only 12%. Previously, this was almost double.

Many buyers seem convinced that the worst is behind us. They also seem to want to take advantage of the extremely low mortgage rates and they took advantage of it have not changed in the second quarter a number of its rules. Since July 1, the maximum amount to qualify for a National Mortgage Guarantee (NHG) namely decreased from € 265,000 to € 245,000. The loan standards relative to income have become stricter.

flow

According to the NVM is the recovery now evident in areas that remained before. Thus, for example Hardenberg and West Friesland, the number of houses sold more than doubled from a year ago. Across the country were especially more semi-detached and detached homes sold. It was an increase of a third compared to the first quarter of 2015. “The flow is now taking off, ‘says NVM chairman Ger Hukker

Not too fragile

The total number of transactions in the NVM connected brokers came in the second quarter to 37,000, an increase of 27% compared to a year ago. The last time this figure was reached, was on top of the market in 2007.

Earlier, it was feared that the recovery of the housing was too fragile to be able to persevere. In particular, the measures restricting lending to bands received much criticism. The NVM speaks of growth inhibitors. According to the association, the consequences by the extremely loose monetary policy barely visible. “The current low interest camouflaging effect.

In the second quarter the average NHG mortgage with a term of ten years to 2.4%. At this time, it is about 2.5%. Mortgages with a term of twenty years with an average interest rate of 3.1%. The mortgage rate thus stands at the lowest point in decades.