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House sales forecast to equal 2006’s record next year

March 31, 2016
Photo: DutchNews.nl
Photo: DutchNews.nl

Dutch house prices will go up by an average of 4% this year and 3% in 2017, according to economists at ABN Amro.

The bank has revised up its price rise forecasts because of low interest rates, which it says will offset the fact economic growth will be lower than earlier predicted. ‘Pent-up demand is another pillar underpinning the housing market recovery,’ economist Philip Bokeloh said.

Buyers are taking the plunge again and a ‘prolonged upward price trend is making buyers more confident’. The recovery also means that some homeowners are no longer in negative equity and once again eyeing the market, he said.

ABN Amro expects the number of house sales to rise by 10% this year and 5% in 2017, equalling the record level of transactions reached in 2006. These are double the bank’s earlier forecasts.

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