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.
Total house value reaches unprecedented heights
Research firm Calcasa has calculated that the value of the total housing stock in the Netherlands has increased by 1 trillion (1,000 billion!) euros in 8.5 years. The year 2013 serves as a benchmark, because in the course of that year house prices finally rose again after a period of five long years of credit crisis. At its lowest point, all homes together were worth EUR 900 billion. That was more in previous years, but the crisis ensured that between 2008 and 2013 home prices declined at a rapid pace and were only sold with great (financial) difficulty.
What caused the total house value to rise so sharply?
In the years after 2013, the housing market catched up on lost time considerably. This effect was reinforced by the structurally declining mortgage interest rates, which made it increasingly easy to take out a loan to buy a house. The result was a sharp increase in demand for and the unprecedented rise in the price of owner-occupied homes. In recent years, the growing shortage of homes that are for sale has been added to this. Due to the tightness of the housing market, bids are often considerably higher than the asking price, causing house prices to rise even higher and, as a result, the total value of homes in the Netherlands to continue to grow.
In addition, approximately 8.5% more homes have been added since 2013, which logically contributes directly to an increase in the total value of all homes. Together with the aforementioned price increase over the past 8 years (93% since 2013!), all homes together are now worth EUR 1.9 trillion. In 2021 alone, this value increased by 235 billion!
Owner-occupied houses in Amsterdam enhance a higher value
The province of North Holland leads the ranking when it comes to the largest increase in value of all homes since 2013. And of course, not entirely unexpectedly, with Amsterdam as the absolute driver of this increase in value. In total, the homes in Amsterdam have increased in value by 45 billion euros over the past 8.5 years. The number of homes in the capital is greater than in other cities, so logically they also contribute more to the total increase in value. In addition, house prices in the Amsterdam region have also risen relatively faster than in many other provinces and regions, which further increases the effect on the total increase in value.
Are you looking for a home in the Amsterdam area and do you want to know how Aankoopmakelaar Amsterdam can support you? Please contact us, we are happy to talk to you!
