2023-07-06 08:02:25
Jul 06, 2023 at 09:59Update: 26 minutes ago
Home buyers have confidence in it again and that is getting the dynamics on the housing market going again, reports real estate association NVM. For example, the number of homes sold in the second quarter of 2023 increased by 20 percent compared to the beginning of this year.
“However, the housing market remains tight, and so house prices are rising again,” says Lana Gersen, real estate agent in Geldermalsen and chair of the Housing department at the NVM.
After the house prices of sold homes fell by about 8 percent in the past year, they are on the rise again, the NVM reports delighted in its quarterly report. At 410,000 euros, the average house price is again 2.8 percent higher than at the beginning of this year. And 34,000 homes were sold in the past three months, 20 percent more than in the first quarter.
“The number of home sales is therefore on the rise again. Now 10 to 15 percent more are sold in the spring than in the winter, but this increase is noticeably greater,” says Gersen. “Sentiment has really changed compared to last year. Viewers I speak to have confidence in the tide of the housing market and are therefore looking again.”
Higher wages compensate for higher interest
The fact that mortgage interest rates almost tripled in 2022 initially meant that first-time buyers in particular could borrow less. But that effect is gone, says Gersen.
“Starters are now used to this and the considerable wage increases this year will make homes more affordable again. So they can assert themselves on the housing market.”
Amsterdam, Arnhem and Nijmegen excel
Not only affordable homes for first-time buyers are doing well. The price increase of 2.8 percent is available in every price range. So more expensive detached houses have also risen in price, the NVM calculates. In terms of regions, Amsterdam and The Hague are doing particularly well.
“Amsterdam always leads the way. Prices rose fastest there in corona time, but the ceiling was also reached first. But prices are not only rising in the Randstad. Prices are also rising in the regions of Deventer and Arnhem/Nijmegen. There is also a lot of demand there Gersen says. Geldermalsen, her own working area, is lagging behind developments in Utrecht.
House sold on average after more than a month
According to Gersen, the dynamism has returned, which is also evident from the fact that homes that are for sale are quickly sold again. In the past three months, this was done within 35 days, a week faster than at the beginning of this year.
“Another factor is that the sellers I speak to are aware of the fact that the housing market cooled down slightly last year. They are therefore no longer afraid of a lower yield. Moreover, they are not much affected by a lower price if they move on to a more expensive homes, which have fallen even more in price in the past year.”
‘Negotiating about asking price is possible again’
According to Gersen, after the heat on the housing market in recent years, it was quite normal for a correction to take place. After a price and sales increase, the real madness does not seem to be back yet, because according to the NVM figures, offers are still on average 0.5 percent below the asking price.
“But that is an average. There are sometimes bids of 20,000 or 30,000 euros on top of the asking price. But sometimes good negotiations can also take place. And sellers understand that. It is no longer a matter of course that there will be massive outbidding.”
Concerns about lack of new homes
The NVM is still somewhat concerned about the tightness in the housing market. The number of home sales increased, including new construction. But not many new offers were added. “There is constantly too little housing supply. As a result, prices are rising again.”
The fact that we are lagging behind the government’s ambitions to realize hundreds of thousands of new homes per year is worrying for Gersen. She criticizes in particular how long it takes for new construction projects to be completed, partly due to decision-making and objection procedures. “If you have to wait two to three years for a home to become available due to local decision-making and objection procedures, many people will drop out. Especially if no temporary rental home is available in the meantime.”
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