House prices plunge 3% in September, sharpest fall this year

House princes were down 3% in September, compared with September 2010, the biggest drop recorded so far this year, according to national statistics office CBS and land registry office Kadaster.


‘The decline in house prices has speeded up in the past few months,’ researcher Senne Janssen told news agency ANP.
The drop was particularly sharp in Den Bosch (down 6%) and in eastern parts of Groningen (down 8.5%).
Pressure
There are several reasons for the decline, Janssen said: ‘Consumer confidence is down, spending power is under pressure and it is increasingly difficult to get financing.’
The average price paid for a house or flat is now around €246,000, the figures show. This compares with €259,000 in October 2008 when the market was at its peak.
Nevertheless, there has been an increase in the number of homes changing hands – up 6% on a year ago, the CBS said.
The CBS believes the effect of the cut in property transfer tax in July will become apparent in the next few months.