Rise in first-time buyers push home prices down in big cities

First-time buyers will be able to borrow less, forcing prices to drop. Photo: DutchNews.nl

Land registry figures show that first-time buyers have become the dominant players in the market, with home prices in the four largest cities falling faster than in other parts of the Netherlands.

The average price of a house in Amsterdam, Rotterdam, The Hague and Utrecht in the first quarter of this year was €480,000, down 8.2% compared to the same period in 2022. The rest of the country fell by 0.8% to €408,000. .

According to the Dutch land registry Kadaster, 58% of the city’s homes are now sold to first-time buyers, compared with 50% a year ago.

The National Home Loan Guarantee Service (NHG) said high interest rates are starting to limit how much people can borrow, with first-time buyers demanding lower prices.

In August 2021, people with an annual income of €71,000 will be able to borrow up to €405,000 to buy a home, but that level of mortgage will require an income of €81,500, the NHG said. calculated.

NHG insures home loans against the financial consequences of personal circumstances such as unemployment, ineligibility to work, or the breakdown of a relationship between domestic partners.