The housing crisis in the Netherlands has taken another depressing turn after Rabobank economists have revised their previous predictions for the development of Dutch housing prices.
They now expect the price rate for a home in the Netherlands to rise even faster for the rest of this year and the next, reports RTL Nieuws.
Start saving yesterday: €90,000 more expensive
Concretely, the Rabobank experts foresee houses in the Netherlands becoming 14,4% more expensive in 2021 alone. The increase in house prices will then continue at a rate of 11,5% in 2022. 😱
This is a dramatic revision of their latest prediction — only dating back to June — in which they predicted prices to rise by 11% this year and 4,6% the next.
Could we please go back to June? 😅
The new economic forecast says an average Dutch house bought in 2022 will be 28% more expensive than the already ridiculous prices. That means hopeful house-hunters will need to bid on average €90,000 more for a home in the Netherlands.
Monthly payments are incresing
“A buyer who buys a home in 2022 is a lot worse off than someone who bought a home in 2020.” That’s the grim message from Rabobank housing market economist, Stefan Groot.
Although interest rates are currently low in the Netherlands, the expected increase in house prices still means a significant increase in homeowners’ monthly costs.
Specifically, future homeowners can expect €300 more in monthly payments if paying off a 30-year mortgage. “Being able to buy a house at a slightly later time affects the financial space that households have for decades,” says Groot. 🏠
The calculation is based on interest payment on the higher prices and extra repayment costs.
For once, Amsterdam is not the fastest mover
There are significant regional differences in the rate of price increases across the Netherlands.
The biggest surge in house prices is expected in Flevoland, where the Rabobank experts predict a 20% increase this year and a 15% increase in 2022.
If you’re hoping to buy your Amsterdam canal house in the coming two years (we can only dream), there’s some good news though! The increase in house prices is expected to be least steep in the capital region — because prices have already soared. 🙃
What’s your experience of the Dutch housing market? Tell us in the comments below!
Feature Image: Tetyanka/Depositphotos