Home sales prices in the Netherlands have soared to a new record-high average of €468,000, reflecting a 13.6 percent increase over the past year, according to the

Dutch realtor association NVM. The second quarter of 2024 saw prices climb 7.2 percent compared to the first quarter, marking an exceptional rise that has only occurred once before since 1995.

This new peak surpasses the previous record of €451,000 set in Q2 2022. After a temporary market dip, home prices fell to an average of €410,000 but have since been on an upward trajectory for five consecutive quarters.

"Prices are skyrocketing due to the tight market, good financing, income increases, and, therefore, consumer confidence," said Lana Gerssen, chairman of the NVM Housing department. Contributing factors include higher wages and lower mortgage interest rates, enabling buyers to spend more. Notably, two-thirds of homes sold in Q2 went for above the asking price, with the final sales price averaging 4.3 percent higher than the listed price.

The trend of overbidding has been evident in previous quarters as well. In Q1 2024, the average price of owner-occupied homes was €432,000, representing a 9.1 percent increase from the same period the previous year. Approximately 55 percent of these sales exceeded the asking price, pushing the average sales price 1.8 percent above the listed price.

In April, May, and June of 2024, NVM realtors sold over 35,000 existing owner-occupied homes, a 3 percent increase from the previous year and an 18 percent rise from Q1 2024. Homes were typically on the market for 27 days before selling, seven days fewer than in the previous quarter and the same period last year.

The housing construction market also showed signs of recovery in Q2 2024. NVM realtors sold 7,300 newly built homes, a 70 percent increase from the previous year and a 1 percent rise from Q1 2024. The supply of newly built homes rose by 11 percent quarter-on-quarter to 15,200 units. Consequently, the average price of a newly built home decreased by 1.2 percent to €475,000.

While Gerssen highlighted the positive growth in new construction, she emphasized that it is insufficient to meet the rising demand for housing. "We need more homes and the right homes. At the right location and with local demand as a starting point, without focusing completely on the first-time buyer segment. That does not really expand the market, and it certainly does not contribute to the necessary flow," she explained.

The NVM plans to meet with newly appointed Housing and Spatial Planning Minister Mona Keijzer to discuss strategies for addressing the housing shortage. "With a practical approach, investors also find their way to developing new construction. We now need to take the step from discussing to building," Gerssen added.