Dutch home listings doubled in 5 years, yet prices keep rising

Mortgage rates are rising, and the number of property listings on the market is growing, yet house prices are not expected to fall. New research has found that the housing market is still too tight for any price drop; instead, prices are expected to rise by around 2,5 percent by the end of the year.

More homes for sale, but the market stays tight

New research published by ING shows that property availability across the Netherlands is rising significantly. In the past five years, the number of homes listed with real estate agents from the Dutch Association of Real Estate Brokers (NVM) has more than doubled, going from roughly 18.000 to 37.000 properties.

According to the report, despite the record number of home sales, more homes are currently entering the market than are being sold.

As tax pressures and regulations increase, private landlords are choosing to sell their rental properties in response, ultimately contributing to the extra supply. Older homeowners in the more rural areas of the Netherlands also play a part as they are putting more houses up for sale.

For expats navigating the competitive Dutch rental market, this investor sell-off could be a double-edged sword: more homes are available to buy, but the pool of rental options may shrink.

Higher rates shrink what buyers can borrow

Although prices are not dropping, buying a home in the Netherlands is becoming more expensive due to financial shifts.

A year ago, the average rate on a 10-year fixed mortgage with the National Mortgage Guarantee (NHG) was 3,6 percent, and it has now crept up to 4,4 percent. This leaves monthly costs for the same mortgage about 6 percent higher, directly reducing buyers' purchasing power even as property values slowly climb.

Internationals looking to enter the property-buying market should be prepared. While higher rates mean less borrowing power, supply is still considered low relative to historical levels, making wider price drops unlikely for now. However, on a local level, minor price adjustments are starting to create opportunities for buyers.