House prices rise by less than 3 percent

In May 2008, existing owner-occupied dwellings sold were an average 2.9 percent more expensive than in May 2007. It has occurred only twice before since the beginning of the series in 1996 that house prices increased by less than 3 percent. Price increases have been slowing down since February 2008. This is reflected in the price index of owner-occupied houses.  

Prices went up for all types of homes. Prices of apartments increased most, with 4.3 percent. The smallest price increase was recorded for semi-detached houses with 1.9 percent. Prices were higher than one year ago across all Dutch provinces, except Limburg.

The prices of existing owner-occupied homes were 0.4 percent lower in May 2008 than in April. Prices decreased most in the province of Limburg. Compared with April, prices rose in six provinces, most substantially in the province of Zeeland.

In May, nearly 14 thousand residential properties changed hands on the housing market, some 20 percent less than in May 2007. Nearly 11 percent more apartments were sold than in May 2007, but the number of all other types of homes sold was down. There is great fluctuation in the number of homes sold from one month to another, however.

The average purchase price of owner-occupied dwellings, as published by several institutions, may differ from the price index of owner-occupied dwellings as published by Statistics Netherlands and Dutch Land Registry Office. The change in the average purchase price is not an indicator for price developments of existing owner-occupied houses though. For more information on this subject, see the article: “Why the average purchase price is not an indicator”.

Prices of owner-occupied dwellings