Owner-occupied homes cheaper in February than a year earlier

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Owner-occupied homes cheaper in February than a year earlier

In February, owner-occupied homes were once again cheaper than a year earlier for the first time in almost ten years. Prices fell by 0.8 percent on an annual basis, the Central Bureau of Statistics (CBS) and the Land Registry report.

In February, owner-occupied homes were once again cheaper than a year earlier for the first time in almost ten years. Prices fell by 0.8 percent on an annual basis, the Central Bureau of Statistics (CBS) and the Land Registry report. (ANP / Harold Versteeg)

Compared to January 2023, prices fell by 1.5 percent. In the first month of this year, house prices rose unexpectedly compared to December.

The month-over-month price decline resumes the trend of the months leading up to January. Prices rose sharply until the middle of last year, aided by the housing shortage and low mortgage rates. But a change came in the summer when interest rates started to rise.

Compared to a year earlier, however, there was still a price increase. A decrease has now also been measured there, the first since April 2014. However, house prices are still 90 percent higher than at the low point in June 2013. The average sales price of an existing home in February was 410,189 euros.

ABN AMRO economists have already indicated that they expect house prices to fall ‘sharply’ in the coming years. They thought that homes would be worth about 10 percent less in two years.

The number of relocations is under further pressure due to the higher mortgage interest in combination with the still high house prices. As a result, the affordability of homes is under pressure, which was also noticeable in the number of homes sold last month. There were 11,858, 15.5 percent less than a year earlier. In the first two months, the number of sales is 11 percent behind a year earlier.

The price decrease measured by Statistics Netherlands is not yet as extreme as the decrease previously calculated by the Dutch Association of Real Estate Agents (NVM). According to the brokers, house prices already fell by 6.4 percent on an annual basis in the last quarter of last year. CBS only processes house sales when civil-law notaries register with the Land Registry. The NVM figures are more incomplete, but are based on the moment the purchase contract is signed. That is sooner, which means that trends are often identified there earlier.


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