‘Dutch house prices to rise by 3 percent in 2008 and 2009′
Selling prices of Dutch homes will develop moderately positively, according to Rabobank analysts. They are predicting price rises of around 3 percent annually in 2008 and 2009.
The median house price is currently 244,000 euros, up 6,000 euros from last year. “The moderate rises of recent years are expected to continue in 2008 and 2009.” Rabobank does note that behind these average figures, varying developments occur at a regional level.
The bank also signals a further decrease in the number of sales transactions. At the moment, the number of transactions has declined for nearly two years since the historic peak in 2006. “Houses are also up for sale for longer, and this is not positive for flow-through and dynamism on the housing market,” Rabobank commented.
Rabobank says the government target of building at least 80,000 new homes annually was met in 2007 for the first time in 10 years. Partly because production has lagged behind for years, the Dutch market for owner-occupied homes however remains a scarcity market. “Particularly in areas with relatively high house prices, many new homes are needed. This applies particularly to the Amsterdam and Utrecht regions.”
The limited affordability of homes remains a problem for first-time buyers in particular. Conversely, people who already own a home are little or not affected by changes in affordability. “Many Dutch home-owners have a mortgage with a long fixed-interest period. They are thereby benefiting from low interest rates from the past and will also continue to do so in the coming years.”
Source: NIS News, 11 May 2008
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