When it comes to housing in the Netherlands, we here at DutchReview have spent much of our time writing about ways to navigate the difficult housing market — but today is different.
Today, the Netherlands’ housing gods (whoever they may be) have blessed us with some good news. Housing prices are actually lower than they were this time last year.
Say what?
Finished choking on your coffee? Ok, great. Allow us to elaborate.
According to the NOS, house prices in the Netherlands have fallen on an annual basis for the first time in nine years. By how much, we hear you ask? Just a glorious 6.4%.
In the last quarter of 2022 alone, house prices dropped by a whopping 3.7%, and this is a trend we hope to see continue. But don’t just take it from us noobs with a laptop and an interest in housing news, take it from the experts.
“The extremely heated market seems to be behind us,” the spokesperson for NVM Estate Agents, Lana Gerssen, tells the NOS.
Biggest price drop in Amsterdam
Check the date — it’s not April 1, so we’re not kidding. To our great surprise, the Dutch capital and its surrounding areas saw housing prices drop the most.
READ MORE | Interest, inflation, and lower house prices: what does this mean for Dutch housing?
Specifically, regions such as IJmond, Greater Amsterdam and Haarlem saw house prices drop by up to 9% compared to last year. 🤯
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On the other hand, regions such as South Limburg and Twente saw housing prices rise by up to 15%. 👀
Time for a reality check
Ok, ok, it’s not all sunshine and rainbows in the Dutch housing market, so we’re going to keep it real with you.
It’s worth noting that while Dutch housing prices have indeed dropped over the past year, they still remain very high.
In 2023, you’ll still need to cough up a whopping average of €407,000 to snag an existing house. Want a new build? That’ll set you back an average of €498,000.
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While this is certainly an improvement on the €427,000 that was needed for a previously owned home this time last year, experts still believe the market will be tough for first-time buyers.
“The average house price is still over €400,000. Then you have to earn quite a lot, and with the increased mortgage interest, the monthly costs are so high that it is becoming increasingly difficult for starters,” Gerssen tells the NOS.
One word: interest
On top of this, these lower prices are now overpowered by higher mortgage interest rates. Over the past year, the Netherlands has seen its mortgage interest rates rise from 1% to up to 4%.
What does this mean? The higher the interest rate, the lower the borrowing power for hopeful homeowners to enter the market with. In fact, this is part of the reason why housing prices have dropped — people simply can’t borrow as much.
So let’s take this good news with a pinch of salt. While housing prices are lowering, people’s chances of getting a mortgage haven’t necessarily risen.
How have you been affected by the Dutch housing market? Tell us your thoughts in the comments below!
Feature Image: Jeroen Stoop/Wikimedia Commons/CC3.0