Residential Quarterly Report Q1 2024

The Dutch housing market experienced a temporary easing of tight conditions but has now returned to its previous state of tightness. The number of homes for sale has dropped by 24% compared to the same quarter last year. Despite this limited supply, transactions have increased by 4%, with new build homes seeing a remarkable 104% increase in transactions. As a result of this high demand and limited supply, average purchase prices have risen by 9% year-on-year, reaching €432,146 for existing homes. Overbidding has become commonplace again, with 55% of homes being sold above the asking price.

Moving forward, price increases are expected to continue in the housing market. Increased wages are offsetting the effect of rising interest rates, allowing potential homebuyers to have a higher borrowing capacity. The supply of homes remains very limited, especially considering the anticipated rate cuts by the European Central Bank (ECB) sometime in the future. However, the precise timing and extent of these rate cuts are still uncertain. Affordability will remain an issue as it currently requires a substantial income for couples looking to purchase an average starter home.