Despite the holiday season, the housing market continues to break records. Last month was the busiest July ever when it comes to people applying for a mortgage, reports HDN. The average market value of owner-occupied homes also reached a new record.
In July, 53,350 mortgage applications were received, 19 percent more than in the same month a year earlier. This is according to figures from Hypotheken Data Netwerk (HDN), which registers almost all mortgage applications in the Netherlands. July was one of the busiest months of this year and almost equals the top month of March, when there were 53,391 applications.
The average market value of owner-occupied homes in July was 517,871 euros. That is an increase of 4 percent compared to July 2024 and a new record, reports HDN. The market value is the value of the home that people have in mind, usually based on an appraisal.
While the market value of existing buildings has been rising slowly but steadily for two years, that of new-build homes is developing “erratically” according to HDN. The value fluctuated in 2024. This year started with a decrease and in July there was a cautious increase for the first time.
It is striking that those moving up the property ladder requested more mortgages than renovators, while renovators have been submitting the most applications for three years, writes HDN. Someone moving up the property ladder is a homeowner who buys an existing home with a significantly higher market value.
Thirties seize their opportunity
The fact that more applications are coming from those moving up the property ladder is, according to HDN, a “clear shift in the market”. The number of applications from those moving up the property ladder was 20 percent higher in July than a year ago. The number of applications from renovators has decreased since the record in March, but there are still 12 percent more than a year ago.
“Especially people between the ages of thirty and forty seized their opportunity to take the next step on the housing market,” writes HDN. According to the organization, possible causes are the expected profit from the sale of their own home, favorable salary developments, the stable interest rate and the improved housing supply.
In recent quarters, many homes have come onto the market because landlords are selling their properties. In general, this ‘de-pooling’ puts pressure on price increases, but according to HDN it is unlikely that this is causing the shift towards those moving up the property ladder.
“De-pooled homes are usually in the cheaper segment,” says an HDN spokesperson. “And someone moving up the property ladder is going to a more expensive home anyway.”