In the nine months leading up to April 2023, the housing market showed a significant decline in prices. After that, prices rose by 2.8% and the average cost of a house reached €410,000. Those who bought a home in July, August or September spent an average of €422,000, an increase of 1.7%. Corne Bout, owner of Libero Aankoop, the largest purchasing agent in the Netherlands, is concerned that things are going in the wrong direction: “We see in the land registry data that all the numbers are going up, including those related to overbidding. Houses are no longer affordable The cost, especially for the “unlucky generation.”

Several factors play a role in the increase

The Dutch Cooperative Association of Estate Agents and Valuers (NVM) points out that there are several reasons for the rise in sales prices. First and foremost, reduced housing supply combined with increased demand puts pressure on prices. In addition, sharply rising wages also play a role. This allows people to borrow more, partially offsetting higher interest rates and inflation. “The number of residents per home is also declining,” Bott adds. “Families are dwindling and the number of divorces is increasing. We have a larger population than ever before, but families are smaller than ever. This means we need more homes. This is currently about 400,000 too few. Political decisions such as the decline also play The number of permits granted and immigration also play a role.

Bid often

Bott points out that there is now more and more bidding: “A few months ago, it was found that in 25% of cases there had already been a bid. This has now changed to 35%.” He points out that it is easy to predict when there is an overbid. Necessary to actually get the home. For example, it is advisable to increase the offer on homes that have been for sale for a short time and have a lot of interest. Homes in popular locations also require an offer above the asking price. Although there is often room to negotiate on homes that You build it yourself, but you can’t avoid bidding on homes that are completely “finished.” “Those homes that are like life in VT, with perfect furnishings,” Bott joked.

According to the real estate agent, the price range and area of ​​the home play a role in overbidding. “The competition for entry-level affordable housing is so high that there are always higher bids. If you choose a house in the province for less than 500,000 euros, it is now rare for it to be outbid. In Amsterdam, this limit is up to 700,000 euros,” Bout explains.

The art of double exposure

At Boots Estate Agency, a lot of work is currently being done on making a ‘double offer’. An offer is made where you offer the seller two options: a higher offer with financing reserved, or a lower offer without financing reserved. “One seller wants to make sure the sale goes through, while the other chooses the highest amount. It’s a gamble and remains a gamble as to which option the seller is looking for, because real estate agents don’t disclose that,” Bott says. “By double bidding, you can increase your chance of making a the goal”.

According to him, the fact that a lot of success has been achieved through dual viewing is reflected in practice. “It works great. Of course, it depends on the client’s profile whether we advise them to overbid, but if you really want to own a home, you should do it now.”

future

Bott finds it difficult to make statements about the immediate future of the housing market: “The housing market is unpredictable. In 2020, all the experts said that the housing market would collapse, but prices were not rising as quickly as they were then. However, it can be said that At a certain point, the increase in prices can no longer continue. In any case, what buyers are advised to do is: Buy if possibleProvided that you want to live there for more than 5 years. “At least then you will continue to build value.”