3 Homes have become twice as expensive in nine years

House prices have doubled in the past nine years. According to figures from Statistics Netherlands, a house for sale was 99% more expensive in July than in June 2013.

The prices of existing homes fell to a low point in June 2013 – at the height of the credit crisis. Since then, house prices have risen almost non-stop and the cost of a home for sale has now almost doubled.

There are several reasons for this boom in the real estate market. There is a shortage of housing, which is driving up prices. Extensive financing options for own living space so that higher amounts can be offered. Low interest rates on savings and bonds also play a role, causing investors to focus more on the Dutch housing market.

Meanwhile, the boom now seems to have eased somewhat: in July, house prices rose more slowly for the third month in a row than the month before. In addition, the number of transactions has decreased again compared to last year. In the first seven months of this year, 107,722 homes were sold, 22% less than in the same period last year.

The cooling of the housing market is caused by a combination of prices and rising mortgage rates. House prices are now so high that fewer and fewer people can put enough money on the table. At the same time, mortgage interest has been rising for several months, making it possible to borrow less. As a result, the housing supply has increased slightly in recent months.

Source: NU