The Dutch Realtor association NVM came out with their quarterly report on the housing market in The Netherlands this week. For the first time since the third quarter of 2013 the price of the average sold house in Amsterdam declined year over year.
Furthermore the average price per square meter (m2) is declining from last quarter. No year over year decline here yet. It will be interesting to watch to see if the trend continues.
The average time a house sits on the market has also been going up to an average of 31 days.
Here’s two different charts of the Herengracht Index. The Herengracht Index is a very long index showing the value of house prices along the Herengracht in Amsterdam. The Herengracht is a street in the center of Amsterdam alongside the Herengracht canal and has since the beginning of the 1600s always been a street on which people have been eager to live.
“The Herengracht has been dug in three phases, of which the first was in 1585, the second in 1612, and the third in 1660. By 1680, nearly all the lots on the canal had been developed. The properties built during the first development phase between 1585 and 1612 were relatively small and insignificant, but from the second construction phase in 1612, the Herengracht was meant to be the most fashionable and beautiful of all the canals in Amsterdam. It has been Amsterdam’s finest location until present times.
Nearly all the properties on the Herengracht practice of trades was prohibited, many also were for residential use, but, although the contained the office of the owner. In this century, the buildings along the canal have been increasingly put to use as offices, especially in the more expensive areas. The first building specifically constructed for office use dates from 1858, while the first time an existing building was transformed into an office was in 1808. Especially in the first half of the twentieth century were many properties transformed into offices. For all properties, ownership of the building and the land on which it stands go together.
The number of properties has gradually decreased over time. Originally, there were 614 lots, but already during the first development phase, lots were combined to allow for the construction of bigger buildings. This has continued until the present, and there are now some 487 properties.” Source: A Long Run House Price Index: The Herengracht Index, 1628-1973
This animation (gif) show the property value in euro per m2 of houses in Amsterdam from 2002 till 2018 based on the sale price. The color ranges in the legend are adjusted to the annual inflation rate in The Netherlands.
Housing prices in Amsterdam have doubled in most parts of the city. Notice how the prices in Amsterdam reached a low in 2013 after the financial crisis. I’ve posted before about how Dutch housing prices dropped a total of 20% from 2008 till 2013. It’s which was It’s easy to spot the boom bust and now boom home price in Amsterdam in this visualisation.