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House prices to fall by five per cent in 2012

The Dutch property market is not expected to recover for at least two years after house prices fell by four per cent in 2011.

The slide is being accelerated by an increase in the number of properties for sale as homeowners struggle to find mortgage finance, leading to a shortage of buyers.

‘The number of purchases and the average price are expected to fall by about five per cent this year, and we don’t expect a recovery in 2013 either,’ said Ger Hukker of the Dutch Association of Estate Agents (Nederlandse Vereniging van Makelaars/NVM).

The number of homes on the market reached its highest level ever in the fourth quarter of 2011 at an estimated 227,000.

The NVM is also concerned about the state of the mortgage market as Dutch households labour under the highest mortgage debt levels in the EU, as well as politicians’ reluctanct to reform the system of mortgage interest tax relief.

‘Consumers can’t borrow so easily and also have to deal with a greater debt burden. Moreover, people have less confidence because of the economic situation,’ said Hukker.

Source: De Volkskrant: 'Zelfs in 2013 nog geen herstel op de woningmarkt'

Photo by Amsterdam Herald