Experts: Dutch Housing Market Prices Bounce Back Despite Mortgage Rate Surge

Experts reveal that Dutch housing market prices are rebounding, defying the impact of rising mortgage rates. The latest data shows a 3% increase compared to the previous quarter, with properties being sold above the asking price. Find out more about the positive trend in the Dutch housing market.

Dutch housing market prices are experiencing a rebound, defying the impact of rising mortgage rates, according to experts. On Thursday, leading mortgage advisory chain, De Hypotheekshop, revealed that house prices in the Netherlands have increased by approximately 3 percent compared to the second quarter of this year. This positive trend is evident in various regions, with an increasing number of properties being sold above the asking price and without any resolutive conditions. Earlier this year, De Hypotheekshop had reported a halt in the decline of house prices, and recent data from Statistics Netherlands (CBS) validates this observation. CBS has noticed a gentle increase in house prices for the third consecutive month when compared to the previous month.

Experts: Dutch Housing Market Prices Bounce Back Despite Mortgage Rate Surge | ogusyis

In addition to broader market indicators, De Hypotheekshop also evaluates its own mortgage data, which covers approximately 8 percent of the market. The third quarter saw a consistent number of mortgage applications similar to the previous quarter, indicating a steady demand for housing. However, amidst these positive developments, mortgage rates have once again begun to rise after stabilizing earlier this year following a remarkable surge in 2020. Investors are anticipating central banks to maintain higher policy rates for a longer duration than previously expected, leading mortgage providers to increase their interest rates accordingly.

Despite the upward trajectory of mortgage rates, the Dutch housing market remains resilient, showcasing its strength amid economic uncertainties. The rebound in house prices demonstrates the continued appeal of real estate investment in the Netherlands, as buyers and sellers exhibit confidence in the long-term prospects of the market. While rising mortgage rates may incur additional costs, they have not deterred potential home buyers, who are eagerly investing in properties, even above the original price.

In conclusion, the Dutch housing market is defying the odds by bouncing back from previous downturns. House prices are steadily increasing, indicating a robust and resilient market. The rise in mortgage rates has not hindered the demand for housing, with buyers showing a willingness to invest despite potential additional costs. The real estate sector in the Netherlands continues to demonstrate its allure, cultivating confidence in both buyers and sellers.