NVM: focusing on broadening houses offered and more newly built houses helps flow.
The supply of houses for sale in the Netherlands has again decreased. This is evident from the housing market figures for the fourth quarter of 2021 published by the NVM. Over 35,000 houses were sold in the fourth quarter. That is about 23% less than a year earlier. The number of houses still for sale at the end of the fourth quarter of 2021 was only 15,600 houses: 33% less than a year ago. As a result, the pressure on house hunters remains as high as ever. In the whole of 2021, over 140,000 homes were sold compared to over 172,000 in 2020, a drop of 19%. The increased scarcity once again led to sharp price increases. The average selling price of an existing home rose in the fourth quarter of 2021 to € 438,000 and that of a newly built home to € 466,000. his is an increase compared to the fourth quarter of 2020 of 20.7% for an existing home and 13.8% for a new home.
House owners do not put their house up for sale without any prospect of finding another suitable home. The NVM has noticed that the completion and realisation of newly built houses is still stagnating. As a result, the flow of houses is also stagnating and the market is grinding to a halt. The focus on a wider housing supply is crucial. hat is why we need to get the newly built projects underway quickly. Then the flow on the housing market will get going. As NVM, we work hard every day to provide consumers with living comfort and enjoyment. That is a fundamental right, and our members feel better than anyone how great and urgent that need is in society. This requires some work and the NVM is pleased that our request for a Minister of Living and Housing with direction and power of persuasion has been met. Together we face a major and responsible effort to offer home owners and home seekers what they want: a suitable home. The NVM therefore calls on Minister De Jonge to form a “BouwStimuleringsTeam” (Construction Stimulating Team, BST). This BST includes parties from the field as well as civil society and will advise and assist the Minister in a positive and constructive manner. A practical platform for periodic consultation with public and private parties. This will give the vision momentum for implementation. This is crucial to solving the housing shortage. We cannot afford to lose any more time. Housing seekers count on us.
We are in a vicious circle in the current market. The flow of people through the market is stagnating due to a lack of supply and the shortage is pushing up prices. A divide in society is lurking in which home owners and home seekers are increasingly pitted against one another. he low interest rates, the surplus value on existing homes, the savings deposits and the confidence in the economy easily lead to high offers and prices. Pointing and blaming each other is already rearing its head. Seniors are being accused of not wanting to move. That is too easy; there is simply no suitable offer for this target group. This slows down the process of setting up a chain of houses that are up for sale. There is a clear role for the NVM estate agent here. It is about the essence of the estate agent profession: bringing supply and demand and a buyer and seller together. As local and regional experts, we map out the demand. This way we help the government, locally and regionally, with their housing policy issues. Building to measure, initiating circulation and thus making the right and larger supply available. This also benefits the affordability of housing. No more waiting, but taking action together. That is what buyers and sellers expect. That is what buyers and sellers expect.
Existing housing in the Netherlands in figures
– Over 35,000 homes were sold in the fourth quarter of 2021, almost 23% less than in the fourth quarter of 2020. Compared to the third quarter of 2021, it is a plus of 10%. On an annual basis, NVM estate agents sold over 140,000 houses;
– The transaction price in the fourth quarter of 2021 was € 438,000, which is an increase of over 20% on an annual basis. This is the third consecutive quarter in which the annual increase has been around 20%;
– The price of terraced houses rose the most: by 22.5% in one year to € 386,000. The price of flats rose by almost 20% in one year to € 373,000. Detached houses recorded an average of € 645,000, also an increase of 18% on annual basis;
– Some 80% of the homes were sold above the asking price. Terraced houses were outbid the most, in percentage terms. Semi-detached houses recorded the lowest percentage of outbids;
– It now takes an average of 23 days before a house is sold. This is 1 day longer than in the third quarter of 2021. The bottom limit in terms of selling time seems to have been reached.
Current supply of existing buildings in the Netherlands
– Supply on the owner-occupier market remains modest with a scarcity indicator of 1.3. The scarcity indicator expresses the number of options a potential buyer has on the housing market;
– At the end of the fourth quarter of 2021, more than 15,600 homes were for sale compared to 23,500 a year ago. This is the lowest number since 1995 when recording the number of houses for sale started;
– The number of semi-detached houses declined fastest, by 48% compared to a year earlier. The supply of terraced houses and flats declined slightly less rapidly: 20% for terraced houses and 27% for flats;
– At 45%, the south-western region in Drenthe recorded the sharpest drop in supply in a year’s time. In the Veluwe, the Gooi, the Achterhoek and the northeast of Brabant, 40% fewer houses are currently for sale. These regions are popular with residents from the Randstad;
– The average asking price for houses for sale was €476,000. For the first time in years, there has been a decline compared to the fourth quarter of 2020. This is a result of the changed ratio of house types for sale. The proportion of more expensive semi-detached houses is clearly lower. The share of cheaper terraced houses and flats has clearly risen. This depresses the average asking price;
– The duration of the offer, i.e. the average time in days that a house is up for sale, is now 47 days. This is 41 days shorter than in the fourth quarter of 2020;
– Homes change hands quickly. Almost 75% of all homes for sale are on offer for less than a quarter; a year ago, this was still 61%.
Newly built homes in the Netherlands
– In the fourth quarter of 2021 NVM brokers sold approximately 8,000 newly built homes and building plots. This is a 19% drop compared to a year earlier;
– On an annual basis, NVM estate agents sold over 35,000 houses in 2021. This is a small plus compared to 2020;
– In the fourth quarter of 2021, 8,800 newly built homes were put on the market. This is 22% lower than a year earlier and the lowest number in the fourth quarter since 2013;
– NVM brokers put 33 newly built homes and building plots up for sale for the whole of 2021, a clear drop from almost 40,000 in 2020;
– Of all newly offered houses, over 40% are flats;
– The average price of the sold newly built homes has increased in one year by almost 14% to an average of € 466,000 in the fourth quarter of 2021.
The figures in our region
In the Municipality of Wassenaar, the number of sales fell by 24.9% compared to the fourth quarter (70 homes) and 22.4% fewer homes were sold compared to the previous quarter. Prices rose by 32.4% compared to a year ago and by 2.6% compared to the previous with the same period of time. The average transaction price currently stands at € 1,013,000. The average selling time is 54 days versus 77 days a year ago. The percentage of homes sold above the asking price in the fourth quarter of 2021 is 42%.
In the Municipality of The Hague, 16.9% fewer houses (1,106 houses) were sold in the fourth quarter of 2021 than in the fourth quarter of 2020. Compared to the previous quarter, 17.9% more houses were sold. The average transaction price in the fourth quarter of 2021 was € 459,000. Compared to a year ago, the average transaction price rose by 22.1%, and by 4.3% compared to the previous quarter. The average selling time in the Municipality of The Hague in the fourth quarter of 2021 was 24 days versus 29 days a year ago. The percentage of houses sold above the asking price in the fourth quarter 2021 is 78%.