Buyers get more room to negotiate as housing supply grows

Home buyers in the Netherlands had more choice and, in some cases, more room to negotiate over the summer, but the market remains tight, according to estate agents’ association NVM.

Almost two-thirds of homes sold by NVM agents between mid-June and mid-September went for more than the asking price, down from 71% a year earlier, the association said on Thursday.

“More supply gives home buyers a bit more breathing space,” said Lana Goutsmits-Gerssen, chair of the NVM’s housing group. “They have more choice, can more often plan a second viewing and get more room to negotiate on some homes.”

Some 39,000 existing homes were on the market with NVM agents at the end of the period, 24% more than a year ago. The average sale price was €503,000, up 1.8% year on year.

Prices in the Greater Amsterdam region rose just 0.6%, and fell slightly in the Haarlem and Leiden areas and in Zeeland. The biggest rise, 8.3%, was in southwest Drenthe.

Sales held steady at around 41,700, roughly the same as a year earlier. The NVM first reported signs of the market starting to shift in January.

Rental supply shrinks
Much of the extra supply comes from former rental homes, mainly apartments, as landlords continue to sell up. That has widened the choice for buyers but reduced the number of homes available to rent, the NVM said.

The association’s measure of market tightness, which compares the number of homes for sale with the number sold, rose to 2.8 from 2.3 a year ago. Anything below 5 counts as a tight market.