22 Feb 2024 at 00:00
Prices of existing owner-occupied homes were again 1.8 percent higher in January than a year earlier. For the second month in a row, the price rose on an annual basis. As a result, the highest house prices ever are once again in sight.
This is evident from figures from statistics agency CBS. The peak in house prices was in the summer of 2022, when home buyers paid an average of more than 445,000 euros for an owner-occupied home. Then prices fell until June last year. On a monthly basis, house prices are already on the rise.
The average sales price has now risen to more than 433,000 euros. If house prices continue to rise as in recent months, a new peak will be reached in March or April.
Also according to the CBS price index, the highest house price ever is approaching. House prices are now 30.5 percent higher than in 2020. In July 2022 this was still 32.9 percent. The price index takes into account quality differences between owner-occupied homes sold in that month.
More homes sold
It is also striking that the number of home sales has increased considerably. In January, 14,452 owner-occupied homes changed hands. That was 10 percent more than in January 2023. Since the spring of 2021, this was only the fourth month in which the number of home sales increased.
This may be due to the fact that a year ago there was an energy crisis and high inflation, so potential buyers held back for a while at the beginning of 2023.
Furthermore, since January, a group of people have been able to borrow more to purchase a home due to broader lending standards and you are more likely to qualify for the National Mortgage Guarantee, which protects home buyers against a residual debt in the event of forced sale. “These things can indeed play a role, but it is difficult to pinpoint one cause,” says CBS economist Luuk Hovius in a response.
Image: ANP
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2024-02-21 23:00:24
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