House prices are stabilising and will rise in long term, says Rabobank

There are real signs the Dutch housing market is stabilising, economists from the country’s biggest mortgage lender Rabobank said on Friday.

The bank said in its quarterly housing market statement it expects house prices to stabilise in the near future and eventually to begin slowly rising again.

There are number of signs which indicate a possible market recovery, Rabobank said. Houses have become more affordable, despite new tax rules and the tighter mortgage lending criteria.

‘In addition, consumer confidence in the housing market has continuously increased month by month in the past six months, although a lasting recovery of confidence is certainly not in place yet,’ the statement said. The above-average increase in house sales in recent months is also a positive sign.

Although house prices have fallen by 18% in real terms since 2008, taking inflation into account, the drop is nearer 30%, Rabobank said.

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