House prices in the Netherlands will fall in 2023, Rabobank predicts
Anyone hoping to buy a house in the Netherlands will be happy to hear that there is some light at the end of the tunnel: after years of house prices rising steadily and the Dutch housing market becoming increasingly competitive, Rabobank has predicted that house prices will fall before the end of next year.
Cost of buying a house in the Netherlands to fall in 2023
Recent reports have revealed how dire the situation on the Dutch housing market has become. Not only have house prices in the Netherlands doubled over the last nine years, but someone earning an average salary can afford to buy just 1 percent of homes. While the situation does appear to be cooling off, Rabobank’s prediction will likely come as a relief to many who dream of owning their own home.
Economists at the Dutch bank expect that, over the course of next year, house prices will rise by an average of 3 percent - significantly lower than the 15,2 percent projected for 2022 - before falling at the end of 2023. The experts attribute the falling prices to high interest rates for mortgages, the energy crisis and uncertain economic forecasts.
Dutch house prices rising at a much slower rate
Prices aren’t going to drop sharply anytime soon, but in the short term, the cooling off of the Dutch housing market does seem to be holding steady. The most recent figures from Statistics Netherlands (CBS) and the Land Registry revealed that house prices rose by “just” 11,9 percent between August 2021 and last month.
This marks a notable drop compared to the 14,5 percent recorded in July, and the increases of over 20 percent that were seen last winter. Prices continue to rise, but CBS emphasises that the growth has been happening at an increasingly slower rate since May.