Scarcely a day seems to go by without a bank, mortgage provider, or other expert publishing figures about the Dutch housing market. Are house prices rising or stabilising, what is happening to interest rates and is overbidding still a trend? So it seems sensible to pause for a moment and take stock.
Are Dutch house prices stabilising?
Firstly, house prices. Last month the NVM, an association that represents about 70% of Dutch real estate agents, published its new quarterly review. The figures showed that house prices rose over 12% in the third quarter of this year when compared with 2023, but the increase was only 0.4% on the April to June period. And that, the NVM said, could indicate that prices are stabilising.
A week later, ABN Amro said it expected prices to rise 8.5% this year and a further 5% to 7% in 2025 but this, the bank’s economists say, is also an indication that prices may be settling down.
None of that takes away from the fact that you will have to spend more to buy a home. Prices averaged €473,000 in the third quarter of the year, although there are, of course, wide regional variations.
More apartments for sale
The NVM, statistics agency CBS and ABN Amro have also all observed an increase in the number of transactions – which means more apartments and houses are changing hands. Part of this would appear to be down to a rise in the number of apartments coming on the market as landlords pull out of the rental sector.
Changes to the rent control system, for example, and higher taxes on property ownership, are having a deterrent effect on smaller landlords in particular. I’ve said it before and it is worth saying again. If you live in a rental property that you like, there is no harm in asking your landlord if they would like to sell. It could be a win-win win situation for both of you.
Interest rates going down
Interest rates, by contrast, have been going down slightly in recent weeks. If you wanted to buy a house with an NHG guarantee, which protects you against becoming unable to pay your mortgage, it would have cost you around 4.10% for a 10-year fixed period in August. In October last year you would have paid around 4.55% and this month you will be able to get an interesting deal for around 3.6%.
So should you wait, or sign up for a shorter fixed period in the hope that rates come down further? It all depends on how much financial security you want. If it is important to you to know exactly how much you will spend a month, opt for at least a five-year fixed deal. But if you can be flexible, you can opt for a shorter period. I do think interest rates will come down more, but I should say, however, that the days of interest rates of 1% and lower are firmly behind us.
Financing clause
Another trend that has been highlighted in recent weeks is that of placing an offer on a property without a financial clause. I’ve written about making an offer zonder voorbehoud van financiering before and now it seems everyone is jumping on the bandwagon.
Buying without a financial clause means you are committing yourself to buy the property without the final say-so of a bank. In this overheated market, it is increasingly being seen as a way of getting an edge over other people who may be after the same property.
If you are confident that you will get the mortgage you need, this might well be a sensible step to take, but make sure you discuss it properly with your mortgage advisor before you do so. I cannot stress that enough.
Taking the plunge
Buying a house is all about being properly prepared. That means having your paperwork in order, getting a buying agent who knows the area you are interested in well, and having a preliminary chat about a mortgage with someone who understands your situation as a foreign resident and can give you an idea about how much you can realistically spend.
Keep an eye on house prices and mortgage developments as well, but don’t let the market paralyse you into not making a move when that perfect opportunity comes along.
