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.
The Dutch Statistics Bureau CBS came out last week with a new monthly update on Dutch house prices. The data is showing that the speed at of which house prices in The Netherlands are rising is slowly declining.
Meanwhile the Dutch government has come out in the past few weeks with changes to the taxing of property investments in box 3 (investment properties will be taxed higher) and it has proposed a new law which will limit the amount of the WOZ-waarde (the value of a home used for taxation purposes) to be used as points to calculate whether a house will be classified for rent control or not. These two changes could potentially have a big impact on the prices of Dutch homes.
At this moment Dutch house prices were 5,7% higher in August 2019 than a year before. This is down from the 9,5% year over year growth of prices in November 2018.
The average sales price of Dutch home has risen to a price of € 316,000. At the bottom in June 2013 the average sales price of house in The Netherlands was € 206.000. From the bottom in 2013 prices have risen a total of 53%.
The rise in prices has led to a decline in houses that are sold per month. As can be seen in the two below charts the amount of houses that are sold each month has been declining. This is also partly caused by a shortage of houses in the Netherlands.
At this moment the value of all houses sold in the Netherlands is not showing any signs of weakness but a drop can happen suddenly as the below chart shows.
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.