Even though house prices in the Netherlands have been falling for some time, they are still some 10% too high, Rabobank director Piet van Schijndel says in an interview with Monday’s Financieele Dagblad.
Schijndel, who is in charge of the bank’s mortgage operations, says a proper ‘correction’ in house prices would get the market moving again.
Uncertainty about house prices combined with uncertainty about the mortgage interest tax break have contributed to market stagnation, Schijndel told the paper. ‘Is it that young people can’t borrow enough or are house prices simply too high?’ he said.
Rabobank is the biggest mortgage provider in the Netherlands, with some 40% of the market. Schijndel said it would be at least a year until house prices have fallen by a further 10%.