You are currently viewing Houses fell more in value in March

Houses fell more in value in March

The average sales price of a home fell by 2.3 percent compared to the same month last year, the Central Bureau of Statistics (CBS) and the Land Registry report. Rising mortgage interest rates, among other things, are depressing the value of homes.

In February, house prices fell by 0.8 percent on an annual basis. It was then the first time in almost ten years that houses were cheaper than a year earlier. Between February and March, homes lost an average value of 0.5 percent. A total of 15,453 homes changed hands in March, 2.4 percent less than one year previously.

The price fall as determined by Statistics Netherlands is not yet as extreme as the decrease previously calculated by the Dutch Association of Real Estate Agents (NVM). House prices fell by 8.2 percent in the first quarter, according to brokers The NVM figures are more incomplete, but are based on the moment the purchase contract is signed. That is sooner, which means that trends are often identified there earlier.

Strongest declines in Utrecht

According to Statistics Netherlands, house prices fell the fastest in the first quarter in the province of Utrecht, namely by 3 percent compared to the first three months of last year. Prices also fell on an annual basis in six other provinces. But in Zeeland, Overijssel, Drenthe, North Brabant and South Holland, houses were still worth more than a year earlier. But that increase was less sharp than in previous quarters.

Houses also fell in value in the four major cities, with the sharpest fall in the city of Utrecht (minus 7.4 percent). Prices also fell in Rotterdam, but with a minus of 0.3 percent, much less than the national average.

House prices have risen sharply in recent years. This made it increasingly difficult for starters in the housing market to find a house to buy. The NVM recently warned that these problems are still not over, even though the supply of affordable homes is growing somewhat. In addition to the higher borrowing costs for a mortgage, this is also due to the fact that little new construction is being built, the brokers’ club stated.