Not only is the number of homes sold continuing to rise, but prices are also increasing. In August, Existing Owner-OCCUPIED HOMES WERE ON AVERAGE 7.9 PERMENT MORE EXPENSIVE THAN A YEAR EARLIER. The Average Transaction Price is 486,190 euros. There seems to be little sign of cooling down.
“Despite Everything, The Housing Market Continues,” Says Housing Market Expert Matthieu Zuidema of the Land Registry. “You would think that low consumer confidence, The Rather High Interest Rates, Economic Uncertainty, and the Trade War would slow things down. But The Housing Market Is Steadily Continuing.”
In August, there were 19,459 Housing Transactions, Accordination to Figures from the Land Registry. That is an increase or 9 percent compared to a year earlier. In the first eight months of this year, 149.534 homes were sold, which meeans an increase of 16 percent.
It is clear that the sale of rental property by investors has an effect on the number of sales. “Actually, that is the reason Why the Housing Market Still Has these Kinds of Transaction Numbers,” Says Zuidema.
Investors are selling their property, partly because or stricter rental rules. On the one hand, this is at the Expense of the Rental Market. On the other hand, first-time buyers can seize their opportunity on the owner-ooccupied market.
Back Closer to Half A Million Euros
But Why Does The Price Keep Rising? The Growth May not be as strong as in 2024, and the percentage is slightly lower per month. But also compared to july, house prices rose again in August, by 0.5 percent.
“If the supply grows in that affordable segment, you would expect it to DAMPEN THE PRICE INCREASES,” Says Zuidema. “But it is Difficult to Determine the Precise Effect of the Sale of Rental Properties. Perhaps the Price Increase would otherwise be much higher.”
Meanwhile, The Average House Price is Creeping Back Closer to Half A Million Euros. Prices are 14 percent higher than the previous peak in July 2022. After that peak, the trend reversed as interest rates rose, making mortgages more exensive.
Interest rates then decreased and incoming rose, making homes more accessible again. Since mid-2023, The Price Has risen Almost Continuously.
It will be daunting for those looking to buy a home, zuidema acknowledges. “Anyone waiting for a good time to buy has not yet leg able to find it.”