Home prices in the Netherlands have been surging once again, with all 25 of the largest municipalities experiencing significant increases in the third quarter. According to data released Monday

by Statistics Netherlands (CBS) and the Land Registry, most of these areas saw existing home prices rise by 10 percent or more.

Utrecht recorded the most substantial increase, with prices for existing owner-occupied homes soaring 18.4 percent compared to the third quarter of the previous year. Amsterdam was the only other member of the big four cities with a double-digit increase, registering a 10.1 percent rise. The Hague experienced a 9.9 percent increase, while Rotterdam saw an 8.9 percent climb. Eindhoven, the fifth largest city in the Netherlands, had the third-largest overall increase, with home prices jumping 15.5 percent.

Among non-big four cities, Haarlem experienced the sharpest rise, with home prices increasing by 16.4 percent, followed closely by Eindhoven, Almere (14.2 percent), and Arnhem (13.7 percent).

Leeuwarden saw the smallest increase among the 25 largest municipalities, with home prices up by just 6.4 percent. Other cities with relatively modest increases included Zwolle (8.5 percent), Rotterdam, Ede (9.3 percent), and Zaanstad (9.4 percent).

After peaking in mid-2022, home prices in the Netherlands initially fell over several quarters, driven by rising interest rates. However, since the second or third quarter of 2023, prices in the 21 large municipalities outside of the big four have been climbing once again, surpassing previous peak levels from 2022. Eindhoven showed the most pronounced increase above its previous peak, with prices 14.3 percent higher. Zaanstad saw the smallest increase, with prices 4.2 percent above the previous high.

The continued rise in home prices across the Netherlands is fueled by a severe housing shortage, coupled with rising wages and declining interest rates, which give buyers greater borrowing capacity for mortgages. These factors have intensified competition in the market, leading many buyers to bid above the asking price. In the third quarter, overbidding occurred in two-thirds of home sales, further driving up prices.