House prices rose slightly last month after owner-occupied homes became cheaper for months, according to figures from Statistics Netherlands (CBS) and the Land Registry. Prices rose by 1.5 percent in January compared to December.
In December 2022, according to Statistics Netherlands, prices fell by more than 2 percent compared to November, which was the strongest fall in ten years.
Until mid-2022, the prices of already built owner-occupied homes rose steadily for years. The increase was fueled by the housing shortage and low mortgage rates. But in August last year a decline started, because interest rates started to rise.
Compared to the same month last year, existing owner-occupied homes were still 1.1 percent more expensive in January. But that was the smallest annual price increase in nearly nine years. Compared to the summer of 2013, when the market was at a low point, the average price for a house was 93 percent higher.
It is not yet clear what will happen to the housing market in the longer term. For example, ABN Amro economists expect house prices to fall by around 6 percent this year.
In the second half of 2022, house prices fell sharply for the first time since 2013. Yet the average Dutch home with a price of 447,000 euros is still far out of reach for the average starter, according to figures released last week by appraisal company Calcasa.
- Starters have a chance at only 3 percent of owner-occupied homes in the Netherlands
- House prices continue to fall, house 6.4 percent cheaper than one year previously