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.
Standard overbidding on a limited supply of houses
With the record increase, the average house price at the end of the third quarter was set at € 401.000,- Which is the highest average house price in the past 10 years and an increase of 18.1% compared to the third quarter in 2020. The fact that overbids are common and that more than 80% of the houses are now sold above the asking price continues to contribute to the structural price rise of recent years. But perhaps the most important factor driving prices up further in this period is the dwindling supply of houses. Compared to the third quarter in 2020, there are currently 44% fewer homes for sale, from 30,000 a year ago to 16,500 at the beginning of last month, according to the latest NVM figures.
The increasing scarcity of homes for sale will inevitably lead to even greater price increases in the coming period. In this context, it is interesting to follow the NVM’s ‘tightness’ indicator. This figure indicates how many houses a house hunter can choose from on average. In the third quarter, this indicator came out at 1.5, which means that, as a buyer, you cannot even choose between at least two houses.
Average house price per municipality
House prices are rising everywhere; you cannot find any municipality where the average house price has fallen in the past quarter. It is logical that there are still considerable price differences per region, but percentage-wise, the increases are in some cases extreme. For example, in a number of municipalities in Friesland, house prices rose by more than 25% in the third quarter. Compared to the average national house price of € 401.000,- the averages in the northern provinces are still considerably lower, often around € 325.000,- But it is a signal that the housing market outside the Randstad is also heading towards overheating.
For most municipalities in the Randstad, the sales figures are generally much higher than the average. For example, if you want to buy a house in Amsterdam or the surrounding area, you will have to pay no less than € 522.000,- on average. The average square metre price in Amsterdam also rose sharply, to above € 6.000,- for the first time in the third quarter.
Would you like to know more about the Amsterdam housing market or are you planning to buy a house in Amsterdam or the surrounding area? Please contact us, we are happy to discuss the possibilities with you!
