Dutch house prices rise slightly after months of decline

House prices rose again last month. Owner-occupied house prices rose by 0.2% in June from the previous month, according to the Dutch Statistics Office (CBS). Prices have fallen in the last four months.

Since peaking in the middle of last year, house prices have fallen sharply. Despite a slight rise, the price is now 5.5% lower than he was a year ago. Rising mortgage rates have reduced the amount a homebuyer can afford to borrow, driving home prices down. It appears to have reached a temporary low point. Compared to June 2013 lows, home prices were still over 87% higher last month.

June also saw an increase in the frequency of home ownership changes, according to land registry figures. The number of housing units sold has increased by 6%, compared with 12 months ago. It was the first increase this year. Home sales in the first half of 2023 fell 7% on an annual basis.

The Dutch Association of Realtors (NVM) reported earlier this month that the housing market appeared to be recovering. The average home price in the last quarter was €410,000, up 2.8% from the first quarter of 2023, according to brokerage figures. It was down nearly 9% year-on-year.

The NVM numbers are even more imperfect, but are based on when the purchase contract was signed. This is earlier than CBS, meaning realtors often identify trends sooner. CBS will only process a home sale if a civil law notary has registered the home with the Land Registry Office.

International Monetary Fund (IMF) Dutch administrator Paul Hilvers had already warned in April against overly pessimistic views of the housing market. At the time, prices were still falling significantly. But he told the ANP that the decline will probably end at some point. Mr Hilbers stressed that there is still a housing shortage in the Netherlands. When supply falls short of demand, house prices can rise.