The housing market has entered calmer waters in the last three months of 2022. Estate agents sold 8 percent fewer homes in this period than in the same period a year earlier, while the average sales price was almost 4 percent lower. On an annual basis, house prices even fell by 6.4 percent, the first drop in nine years.
This is evident from figures from the Dutch Association of Estate Agents (NVM). Because fewer homes were sold, the housing supply increased. In October to December, the supply more than doubled compared to a year earlier.
Although house prices have fallen, almost half of the homes sold were still sold above the asking price. This is a significant decrease compared to a year ago. At that time it was still more than 80 percent.
It is also striking that the difference between the asking price and the selling price is getting smaller. In the past quarter, there was even only 0.1 percent.
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Fewer new homes sold
The figures above relate to existing buildings. The number of new homes sold almost halved compared to the last three months a year earlier. The average price of a new-build home was more than 1 percent less than in the previous three months.
“The fourth quarter of 2022 was friendlier to home buyers,” says Lana Gerssen of the NVM. “The extremely heated housing market seems to be behind us.” She is, however, concerned about the affordability of housing, due to the rise in mortgage interest.
Nevertheless, Gerssen does not yet dare to make predictions for the future. “Forecasting requires a crystal ball and it is not always clear.”
But the population is growing and the demand for housing continues to rise. “The supply cannot keep up and is still falling short. My concern remains that we will not be able to meet the demand for housing if the supply does not seriously increase.”
