Finance

More than four tons for a home: prices are again rising at record speed

This is apparent from the latest figures from Statistics Netherlands (CBS) and the Land Registry. The prices of new-build homes are not included.

Past decades

The agency has been updating house price data on a monthly basis since 1995. For a comparison that goes further back in time, we have to rely on old figures that are only registered quarterly. The last time there was a higher price increase in a quarter than last month was in 1977.

In the 1970s, house prices rose sharply anyway because the government tried to stimulate the purchase of a house, says CBS economist Peter Hein van Mulligen.

In the years that followed, the economy deteriorated and prices fell before rising significantly again in the 1990s. In the late 1990s, savings and investment mortgages were on the rise.

House prices have been on the rise for some time now. Another factor is that the supply of houses for sale has shrunk considerably, while many people still want to move. Mortgage interest rates are also very low. As a result, buyers are bidding against each other and many people have great difficulty in obtaining a house.

Build more homes

The fact that there are fewer and fewer houses to choose from also affects the number of relocations. In November, more than 16,000 transactions took place on the housing market. That is 13 percent less than in the same month last year.

Experts have been warning for some time that many more houses need to be built to tackle the housing shortage. De Nederlandsche Bank (DNB) has also repeatedly indicated that something must be done about the tax benefits for homeowners, which boost demand on the market. This concerns, for example, the mortgage interest deduction. Precisely because people are able to pay a lot for a house, the prices are rising so fast, according to the central bank.

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