Housing market in major cities boils dry – Financieele Dagblad

House prices in Amsterdam have increased in one year by over 20%. Because forthcoming new offer, the market boils dry.

This enables the Dutch Association of Estate Agents (NVM) with the publication of the housing figures in the first quarter. Nationally, home prices on average 5.5% higher than a year earlier.

Facades of Amsterdam canal houses. (Photo: Dutch Height)

According to Sven Heinen, president of the Amsterdam brokers association MVA, there are in the capital only in 2389 homes for sale at about 3,000 last year. In 2013 that figure was about 8000. “You would expect the market once reached a new equilibrium, but in very popular areas fireworks continues.” The average transaction price rose in the past three months by 3.4% to almost € 300,000

first buy, then sell

Het supply of new housing remains that people who want to buy a new home first move in Amsterdam before they put their old house for sale. During the crisis, it was exactly the opposite.

Many home buyers in the capital can not finance their property. Heinen ‘thirties are often helped by their parents € 50,000 or € 100,000 help pay. “At the end of last year showed that interested home seekers in desirable neighborhoods offer above the asking price at 70% of transactions

Other regions also welcome

Surrounding municipalities benefit from this overstrained market. Housing prices in the region Haarlem, Gooi and Utrecht are now 7% to 10% higher than a year ago. Heinen: “My colleagues in the Gooi are very pleased to Amsterdam that offer no more the asking price for a house while it is not really necessary.” The market in the region Den Haag and Groningen also draws strongly

Due to the limited new supply Amsterdam virtually the only region in the first quarter of this year, fewer homes were sold than a year ago. The number of transactions decreased by 2%, where this country actually increased by 20%. On average it takes only 29 days at an Amsterdam property is sold for a home. This country is on average 108 days.

Low mortgage rates

NVM-voorzitter Ger Hukker calls it “surprising” that the number of homes sold nationwide last year increased by 20%. After “the excellent 2015 ‘the brokerage had expected growth of the number of housing transactions would flatten. That this does not happen, because of the extremely low mortgage rates. For a loan with a maturity of ten years, the average rate now more than 2%. A few years ago, that figure was 5%.

As the national sales price of a home is still around 9% lower than at the beginning of the crisis, which according to the NVM is still more affordable than in 2008. the average transaction price is 11% higher than at the height of the housing market in 2013. in the first quarter was an average buyer € 225,000 lost a House.

Rural image

also nationwide supply of new homes is below the number of sales. In the first quarter of this year stood at NVM brokers around 117,000 homes for sale – 17% less than a year ago. In particular, the supply of apartments decreased sharply, by 27%. The number of detached houses which is for sale, the least (9%) declined.

According to the NVM also threaten the housing market nationwide to boil dry. Especially people over 55 are less likely to move, making the supply of new homes is limited. There are 800,000 households that can move hard: their house is still worth less than their mortgage debt. According to the NVM need more houses are built.