House prices fell again in May, dropping 5.6% when compared with a year ago, according to new figures from national statistics agency CBS and the land registry office Kadaster.
The average price paid for an existing property is now almost €404,000, compared with the peak of €446,000 in August last year. House prices have been falling steadily since then, as interest rates rose, limiting buyers’ spending power.
Nevertheless, there are signs the slowdown in house prices may be levelling off, with the month-on-month difference between May and April just 0.1%, the CBS figures show.
“Confidence in the housing market is recovering, particularly among first-time buyers,” ING’s housing chief Wim Flikweert told the Telegraaf. “That is good news but it is too soon to celebrate, given the economy is a worry for many.”
Fewer homes are also changing hands. Last month just over 15,000 homes were sold, down 4% on a year ago, according to the Kadaster figures, which are based on completed transactions and lag those published by the NVM estate agents organisation.
In the first five months of this year, the number of houses and flats which found a new owner is down 10% on 2022.
Meanwhile, the number of homeowners protesting about the official valuation of their property, which is used as the basis for local council and other taxes, has reached a record high.
Almost 600,000 homeowners have made an official complaint about the WOZ value of their homes, three times the 2022 figure.
The WOZ value which homeowners received at the beginning of this year is based on property values at the beginning of 2022 when they were at their height.
“At that point, the housing market was on the rise and that means WOZ values are on average 17% higher than in 2021,” the Waarderingskamer, which assesses complaints, said.
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