Dutch house prices will fall by 10% over the next two years, 6% in 2023 and 4% in 2024. ABN Amuro Predict. Rising inflation and mortgage rates mean the outlook for the Dutch housing market is bleak.
“House prices are falling. This is because mortgage rates have risen sharply while disposable incomes are under inflationary pressure,” said ABN Amro economist Philippe Boquero. says. Higher mortgage interest rates mean people can borrow less on their mortgage.
ABN Amro believes mortgage rates may fall slightly in the future, but remain much higher than they were before Russia invaded Ukraine. Moreover, wages do not increase enough to compensate for inflation. “This means we need to bring housing prices down further to make them more affordable,” the bank said.
There may be fewer homes for sale this year due to falling prices. ABN Amro expects sales to fall 5% this year. But if prices fall, interest rates are likely to rise again, and home sales next year will likely rise by 2.5%, according to the bank.
Although sales are down, ABN Amro expects more people to list their homes this year. “Sellers are putting their homes up for sale faster than they used to. We have fewer viewers and fewer bids exceeding the asking price,” Bank said. Sellers are unsure if they will get an attractive offer and are worried that the sale will take too long, so they list early.
Homebuyers are also becoming more critical of the condition of their homes, according to ABN Amro. With energy prices soaring, things like good energy labels are becoming more and more important. Therefore, while many buyers would prefer a newly built home, Continuing Problems in the Construction Sector In many cases it makes it impossible.