The Amsterdam housing market seems to be cooling slightly. According to the most recent figures from the Makelaarsvereniging Amsterdam (MVA), prices of homes for sale fell slightly in the third quarter, there was less overbidding and it also looks like the supply of Amsterdam homes for sale is continuing to increase. Is the Amsterdam housing market slowly normalizing after all the craziness of the passing years? And how does this affect buyers looking for a house in Amsterdam?
On April 1, 2022, the municipality of Amsterdam introduced the self-occupancy obligation for homebuyers. For new homes this obligation has already been in place for a year and a half, now it is the turn of owner-occupied homes. The purpose of the measure is to prevent homes being bought up by investors who then rent them out.
Rising house prices have not been a surprise for some time now, yet the overheated housing market is repeatedly reaching new milestones that we previously thought were impossible. The average value of a home at the end of 2021 was €431,000, whereas at the height of the credit crisis in mid-2013 it was still €223,000. Almost doubling the average price, therefore, mainly due to the unprecedented price increases of the past year.
‘Duurhuur’. This is the name under which the National Mortgage Guarantee (NHG), together with AEGON, ING, Florius, Vereniging Eigen Huis and BLG Wonen, is launching a pilot to give tenants who have no problems paying high rents a better chance of buying their own home. Customised mortgages will be the solution to this problem.
We are no longer surprised. Another record on the housing market has been broken as a result of the recently published third quarter figures. From June to August 2021, house prices rose by 6.4% compared to the previous quarter. This is the largest quarter-on-quarter increase in over 25 years. So it appears that the most important indicators of the temperature on the housing market can still push their limits.
The temperature in the overheated housing market does not seem to decrease just yet. In fact, the most recently recorded house prices for July 2021 again show new record highs. The value of existing owner-occupied homes rose further in this month by an average of 1.5%. Compared to a year earlier, Dutch homes became 16.3% more expensive, which is the largest price increase since the year 2000. And the end does not seem to be in sight by a long shot.