Overheating and cooling

There was a lot of publicity last week about the quarterly figures of the NVM. The picture this time was: at last there is more housing available, but price increases are still considerable, although they are levelling off a bit. We publish a quarterly regional market analysis and concluded that the overheated market in Eindhoven and the surrounding area is finally cooling down a bit. Some market watchers then go a bit too far and are already warning of an icy cold on the housing market. But of course you could also say that the overheating caused many home seekers to be left out in the cold. And that the cooling will now hopefully provide them with slightly more opportunities.

We are the last ones to deny that all markets are currently in a state of uncertainty due to rising prices and rising interest rates and inflation. Only the labor market seems to be escaping this, i.e. everyone is taking into account that the tightness in that market will continue and that those in work and job seekers will be in a strong position for the time being. In time, this may be an advantage for the housing market, where mortgage rates are rising. Income security and rising incomes for many people may help keep the market going after all. With a wider range of homes on offer and prices not soaring, buyers on the housing market can then gain some ground on sellers.

The nitrogen issue also obviously contributes to the uncertainty in the market. Not only can it further hamper the progress of new construction, but the market for agricultural real estate is also deteriorating as a result. According to recent NVM figures, fewer agricultural businesses were sold last year, but sales and land prices continued to rise. The average price for agricultural land rose last year by 5.7% to over €67,000 per hectare. Rural living, meanwhile, remains as popular as ever. The shortage in the Randstad and perhaps also the corona experiences are driving many people to the rural home farm. As a result, the tightness and prices also increased sharply there. The average transaction price for a rural home came to €738,000 last year, over a ton higher than a year earlier (+20%). Of all the sold farmhouses outside the Randstad, 20% was bought by a Randstad resident. Amounts and figures to think about if you happen to be cycling through the countryside in your own or another region during the coming vacations. Hopefully we will manage to keep our heads cool and keep the overheating at bay.