The rising interest rates in the Dutch housing market have brought benefits to buyers. Although caution has been injected into the market, it has helped to soften the seller’s market and made the purchasing process easier for home buyers. This is because inflated mortgage repayments have been offset by the softening of the market, preventing buyers from overbidding and sacrificing their savings.
The pandemic has played a large role in the many changes in the economy, and buyers have increasingly sought homes that offer more space and a higher quality of life. However, the rising interest rates and inflation caused by the pandemic have had adverse effects on the market, and buyers now need to secure homes at the most affordable price.
Where before buyers only had to deal with an overheated market that made overbidding a norm, the interest rate hike has caused uncertainty in the market. Some buyers have been forced back into renting due to the fear of further hikes. This has made the rental market more buoyant.
Wealthier buyers are more likely to weather the increased cost of home loan repayments, but the rising interest rates have encouraged sellers to be more accurate in pricing their properties for sale or making an offer on a home.
Despite signs of fatigue towards the end of 2022, the housing market has shown more positivity at the start of 2023 and is expected to continue in this trend despite the recent interest rate hike. Over the past month, there has been a significant increase in the number of offer deadlines (inschrijven), indicating new growth in the local housing market and a stronger outlook for sellers in the second quarter of 2023.
The changes in the market highlight the need for well-trained and knowledgeable real estate professionals, such as our talented team at J&B Makelaars, who can advise both buyers and sellers on how to negotiate the current market and how to factor in the possibility of future changes. Contact us today for help and advice!