Housing market holds up, but downturn in new construction is a problem

Photo: DutchNews.nl
Photo: DutchNews.nl

The coronavirus crisis has not yet had a real impact on the housing market and the number of sales has changed little since the government brought in measures to control the spread of the disease, according to estate agents’ organisation NVM.

‘The enormous supply shortage is still with us and the conditions for buying a home remain positive,’ NVM chairman Onno Hoes said, adding that the long-term impact remains to be seen.

Some experts suggest that the corona crisis will mean people delay buying a house, partly because of their income. But Henk Jansen of mortgage advisory group Expat Mortgages says while there may be a temporary impact on demand… ‘in the long run the market will stay stable.’

More worrying, according to the NVM, is the drop in the number of new properties coming on the market in the first quarter of this year.

‘And the impact of the coronavirus crisis still has to be added in,’ Hoes said. ‘And that means even fewer new properties will come on stream.’

On Tuesday, ABN Amro economists said they expected house prices will fall in 2021 as the impact of corona filters through. If they do go down, it would be the first drop since 2014.

But so far this year prices have continued to rise, the ABN Amro economic unit said.

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