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Home prices fell 0.5% in Oct. The housing market yet to face the 2008 crash

Prices for existing owner-occupied homes in the Netherlands fell by 0.5% in October compared to September. This is the third straight month of month-on-month decline. statistics netherlands report. The housing market certainly appears to be cooling, but from 2008 he is nowhere near the collapse of 2013, said rating agency Calcasa. Telegraph After calculating what would happen if the previous crash were repeated exactly.

The average house price in October was €428,079. It was still 7.8% higher than in October 2021. However, year-on-year price increases have also leveled off. Home prices in September were 9.4% higher than a year earlier. And that’s already well below January’s 21.1% price increase.

The Land Registry registered 14,863 title transfers in October, down more than 8% from the previous year. In his first 10 months of the year, 156,521 homes were sold, down more than 17% from the same period last year.

In the last housing market crash, from 2008 to 2013, home prices fell an average of 17%. According to Calcassa, if it happened again now, the average stock value would drop by €70,000. But most homeowners are able to absorb the price drop.

The agency has calculated the current average share value to be €175,000. “This suggests that much of the housing market has enough fat to cope with further price declines for the time being,” the researchers said. The municipalities with the highest property values ​​are Adenhout (€634,000) and Breoemendaal (€515,000), with many million euros. Kerkrade is at the bottom of the list (85,000), followed by Sittard (106,000).

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