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No let-up in housing market slump

The Dutch housing market remains in a deep slump. The first quarter of 2012 was the weakest three-month period for sales in the four years since the credit crisis broke.

Figures collected by the estate agents’ organisation NVM show a 15.6 per cent drop in sales since the last quarter of 2011. Although the winter is traditionally the quiestest month for house buying, the fall-off this year is unusually steep.

The average price of a home also fell by 2.8 per cent, the sharpest drop in three years, to €214,000.

The NVM has called for the government to clarify its position on the tax on house purchases, which was lowered temporarily to stimulate the market in the early stages of the credit crisis.

The tax is due to revert to its previous level on July 1 unless the government extends the concession. The NVM said uncertainty was holding back buyers from entering the market.

Chairman Ger Hukker said the current situation had created a buyer’s market, as shown by the fact that the average house changes hands for more than 6 per cent below the asking price.

He added that confidence in the property market was lower in the Netherlands than anywhere else in Europe.

‘The Dutch market is dominated by insecurity, reduced disposable income and a falling borrowing capacity. The housing market is also dependent on consumer confidence, so negative perceptions have a magnified effect.’

‘If people want to be successful in selling their homes, they need to set the asking price realistically. Otherwise buyers will simply bypass them,’ he said.

Source: De Volkskrant: Woningmarkt bereikt nieuw dieptepunt

Photo by Amsterdam Herald

See also: NVM website (in English)