The Dutch housing market is slowing as buyers face rising interest rates

After the Dutch housing market has become increasingly competitive and inaccessible in recent years, new figures released by the real estate association NVM show that in the first months of 2022 the real estate market in the Netherlands slowed down as those hoping to buy a home faced growth . interest rates.

Rising interest rates have led to a turning point in the Dutch housing market

While many predicted that a coronavirus pandemic would lead to a housing collapse, the reality is that housing and rental prices across the county have risen at a record rate over the past two years. By the end of 2021, house prices in the Netherlands were 20.4 percent higher than in December 2020.

Rising prices and housing shortages in the country have led to an extremely competitive market. The vast majority of homes sold in 2021 have risen beyond asking prices as inflated rates have become more frequent. However, the latest NVM data suggests that rising mortgage interest rates mean that 2022 could be a turning point.

In 2022, less real estate was sold in the Netherlands than in 2021

NVM showed that in the first quarter of this year there was a significant decrease in the number of homes sold: from January to March 2022, there were about 29,000 transactions compared to more than 35,600 in the same period last year. The average price per square meter of all real estate sold in the first quarter also fell slightly from the end of 2021 from 3,948 to 3,905 euros.

Although inflated rates still prevail, NVM figures suggest that in recent months this trend has become less excessive. In the last quarter of 2021, homes were purchased on average 9.1 percent more than the asking price against 8.3 percent from January to March 2022.

Real estate agents note that while signs point to a slowdown in the national housing market, potential buyers should not expect further price declines. “There is a lot of uncertainty in the market,” said Makelaarsland director Geis van Weigerden. AD, explaining that the demand for housing continues to exceed supply. “The great madness is over. But prices, of course, are still incredibly high.