Source: Dutch News —
2023 has started up with a flurry of housing news, including a further drop in house prices and predictions of more to come.
House prices are continuing to fall
House prices fallen for five months in a row as rising interest rates reduce borrowing, according to the Dutch national statistics office CBS. In December, the drop was 2.3%, the biggest recorded in 10 years. And analysts from ABN Amro bank are forecasting a further 10% fall in 2023 and 2024.
‘There has been a lot of negative news around about the housing market but I think if you look at the bigger picture there is more to be positive about,’ says Kenneth Leenders, chief executive of mortgage advisory group Expat Mortgages.
‘Some of our clients are waiting to see if prices go down more but they are largely people who already own a house. A larger group actually do recognise there are opportunities, and that for now supply and demand are becoming more balanced.’
‘The fact that prices are coming down is a good sign. The market was overheated and we are now moving from a sellers market to a buyers market and that is a good development. Previously, you could make an offer on 10 or 15 houses and find yourself being overbid every time. But now you have more of a chance to negotiate.’
Interest rates are up and down
Interest rates continue to go up and down slightly and are now a little below their 2022 peak. Nevertheless, the overall trend is still slightly upward, says Kenneth, who sees the rate varying between 4% and 5% in the coming period.
