Jan 11, 2024 at 9:59 AM Update: 25 minutes ago
More than half of the homes sold last quarter changed hands for more than the asking price. That is more than the 46 percent of the three months before. Figures from real estate agents’ association NVM also show that the housing market is becoming increasingly tight.
For example, last quarter buyers could choose from an average of only 2.1 suitable houses, while a quarter earlier they had 2.6 options. To be clear, to have a balanced housing market, buyers should have five to ten homes to choose from.
The association therefore sees that the housing market is becoming tighter. For example, there were 11 percent fewer houses for sale at the end of December than three months earlier. Compared to a year earlier, there were even 26 percent fewer.
At the same time, prices are rising. For example, home buyers paid more than 3 percent more last quarter than the previous quarter. On an annual basis, the difference was even more than 5 percent. For an average house they had to pay 434,000 euros.
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House prices are rising for the third quarter in a row
Since reaching a low point in 2013, house prices have risen for years, sometimes by more than 20 percent within a year. This came to an end in the summer of 2022. Mortgage interest rates had risen sharply in a few months, meaning buyers could borrow less and therefore offer less money.
The market cooled down somewhat and house prices fell by more than 5 percent. But over the course of last year, the trend changed. Prices have now been rising for three quarters in a row. Buyers also have less and less choice and are increasingly offering more than the asking price. Last quarter, 53 percent of houses were sold above the asking price.
The difference is especially large in terraced houses. In that category, the actual price is on average 2.9 percent higher than the asking price. Also for other types of homes, the purchase price is often higher than what the owner asks for it. Detached houses are an exception. Buyers can get them for 1.6 percent less than the asking price.
In the last three months of last year, 36,500 homes were sold. That is 12 percent more than a year earlier. On average, a house was for sale for thirty days, two days shorter than in the previous quarter.
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New construction prices have fallen slightly
The above figures only refer to existing buildings, where prices have risen. But there was a small price drop for new houses last quarter (-2.3 percent). 468,000 euros were paid for an average new-build home.
Although housing construction is under pressure, more than 19,500 new houses were offered last quarter. This is an increase of 17 percent compared to the previous year and the largest number in almost eight years.
A total of 6,100 new homes acquired an owner last quarter. That is 8 percent more than a quarter earlier and more than double compared to two years ago. The NVM therefore sees a recovery in the new construction market, although according to the real estate agents’ association it remains at a low level.
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2024-01-11 08:59:30
#Overbidding #normal #tight #housing #market #Economy
