Housing prices not falling for now, despite rising mortgage rates
Although the number of houses for sale in the Netherlands has nearly doubled to 37,000, property prices are still expected to rise due to ongoing demand. Higher mortgage rates, currently averaging 4.4 percent, are reducing buyer affordability, leading experts to forecast more modest price growth in the coming years.
A new report from ING reveals that the number of houses for sale in the Netherlands has risen to 37,000, nearly double the 18,000 available five years ago. Despite this increased supply, house prices are expected to continue rising, though at a slower pace than previously anticipated. Projections suggest a 2.5 percent increase in property prices this year, followed by a 1 percent rise next year, as demand persists despite higher costs.
Rising interest rates are placing significant pressure on affordability, with the average 10-year fixed mortgage rate reaching 4.4 percent, up from 3.6 percent last year. This increase has raised monthly costs for buyers by approximately 6 percent, limiting their borrowing capacity. The market shift is driven largely by investors selling off rental properties due to unfavorable tax changes, alongside older homeowners in rural areas choosing to list their houses for sale. This trend of rising inventory is unusual in the current economic climate, occurring alongside these tightening financial conditions.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
