New home sales fall for fourth consecutive quarter
New-build home sales in the Netherlands have fallen for the fourth straight quarter due to financing challenges and a mismatch in housing types. Meanwhile, sales of existing homes saw a slight increase, though rising interest rates are beginning to dampen price growth across the entire housing market.
The sale of new-build homes in the Netherlands has declined for the fourth consecutive quarter, according to data from CBS, the Kadaster, and Eurostat. Experts from the NVM and Woningbouwers NL warn that this trend hampers housing market mobility. Professor Peter Boelhouwer notes that while a large pipeline of construction permits exists, difficulties in financing projects and a focus on smaller urban dwellings that fail to meet the needs of families and seniors are stalling production.
In contrast, the existing housing market saw a modest increase, with nearly 59,000 transactions in the second quarter, marking a 2.7 percent rise compared to the previous year. However, overall growth is decelerating as higher mortgage interest rates limit borrowing capacity for potential buyers. While both new and existing home prices continue to rise, the rate of increase is slowing down. On average, a new-build property cost 514,000 euros, compared to 492,000 euros for an existing house.
Based on reporting by nu. Translated and condensed by LocalHeadlines.
