House prices rose sharply again last month, Statistics Netherlands (CBS) and the Land Registry reported. In June, prices of existing owner-occupied homes were on average 9.7 percent higher than in June 2023. That is the largest increase in almost two years.

In June, buyers paid an average of 441,112 euros for an existing home, which is 1.3 percent more than the month before.

The housing market has been very tight for a while now. There are many more people who want to buy a house than there are houses for sale. Partly because of this, prices rose sharply until about two years ago and potential buyers often had to offer above the asking price. After that, prices fell slightly due to the higher mortgage interest.

House prices have been rising again since June 2023. According to the statistics office, average house prices in June 2024 were 3.2 percent higher than during the previous peak in July 2022.

The fact that prices are now rising again is not only due to the housing shortage, but also to a combination of sharp wage increases and a lot of leftover savings from the corona period. This allows people to offer more for a home. Mortgage interest rates have also fallen.

The number of homes that changed hands in June fell. The Land Registry registered 14,663 home transactions in June, almost 12 percent fewer than a year earlier. In the first half of 2024, 92,383 homes were sold, almost 9 percent more than a year earlier.

The Dutch Association of Real Estate Agents (NVM) reported in early July that house prices had risen to their highest level ever in the second quarter due to the tightness on the housing market. According to the NMV, the average sales price of existing homes was 468,000 euros last quarter, 7.2 percent more than in the first quarter of 2024.

The brokers spoke of an ‘exceptional’ increase, because such an increase has only occurred once since the measurements in 1995. In contrast to the CBS figures, the NVM figures are based on the moment the purchase contract is signed. The CBS looks at the registration with the notary, which takes place later. The brokers therefore often signal trends earlier.