After the publication of the figures for the 4th quarter of 2019 in which the NVM has characterized the situation on the housing market as 'housing shortage', acting minister Van Veldhoven, among others, has pledged to accelerate housing construction. That is precisely why the decrease in the number of new-build homes offered in the first quarter of 2020 is worrying. And the effects of the corona crisis are now being added, as a result of which less new construction is expected.
The corona crisis reached our country in the second half of March 2020. The NVM has established that the sale of the existing housing market in particular remains stable. The enormous shortage in the market is still there and the conditions for buying a home are still favorable. Since the housing market is a confidence market, it is not yet clear what the long-term consequences will be. Now is still a good time to buy and sell.
In the 1st quarter of 2020, almost 7% more new-build homes were sold in the Netherlands by NVM estate agents than in the same period a year earlier. This concerns approximately 8,600 new-build homes. Many consumers want to take the step to new construction. These homes are often provided with all sustainable measures, so that the costs for the future are limited - or at least known. That gives a comfortable feeling.
Existing construction is stable
In the 1st quarter of 2020, NVM home brokers in the Netherlands saw a minimal decrease in the number of sales of existing homes. 0.6% fewer homes were sold than in the first quarter of 2019. In total, the NVM brokers sold almost 32,800 homes. The price increased by 9.6% in the 1st quarter of 2020 compared to the same period last year. The transaction price of the average existing home sold is € 326,000. The average price of the sold new-build home increased by more than 14% in one year to more than € 400,000 in the first quarter of 2020.
The housing supply of existing buildings in the Netherlands is still shrinking. The number of homes for sale by NVM estate agents in the middle of the 1st quarter of 2020 fell by 28.6% compared to the 1st quarter of last year. There are now about 30,200 homes on offer, a very low number. It has been no less than 20 years since there was so little supply available for the house-seeking consumer. The main cause is the low number of homes put up for sale (the new offer), which were only 31,700 homes, according to the NVM. This is 10.6% less than last year and the lowest number in 5 years. A potential buyer could choose from just 2.8 homes in the first quarter of 2020.
The corona crisis reached our country in the second half of March 2020. In the first weeks of the stricter measures to prevent the further spread of the coronavirus, the housing market still "just" continues. The number of homes sold increased by 4% in the week from March 30 to Sunday April 5 compared to the week before. Households with concrete purchase plans, which are about to take the step, simply continue to do so.
Viewers are more serious
Real estate agents indicate that although there are fewer viewers at a home, they are serious. The conditions for buying and financing a home are still the same, which makes the NVM very favorable. The anticipated increase in interest rates is not yet a problem. However, the housing market is a confidence market. The NVM sees that transactions that were in the pipeline continue. The long-term impact of the corona crisis on the housing market will depend mainly on the length of the crisis and the severity of the measures taken. It is crucial, however, that all relevant authorities, project developers and financiers continue to have confidence and continue to invest in affordable new construction. The shortage on the market is the starting point and the enormous demand behind it has not disappeared overnight.
In the first weeks after the announcement of the period of social abstinence, the number of withdrawn bids increased, but it has since dropped back to the average level. The NVM notices and sees on Funda that more houses are now for sale. The NVM thinks that people who have bought another house or want to buy another house, are promoting the sale of the current house. It is therefore expected that we will see this effect later in the year in the form of less new supply.
Finally, the NVM Haaglanden Department would like to compliment the consumers who have physically visited a home in recent weeks. We hear from our members that home seekers are very familiar with the RIVM measures and apply them in practice. It is great that everyone involved can look for a new home in this way, while we also pay attention to each other's health.
Compared to Q1 2019, there is an increase in transactions (178 homes) of 18.6% in the Municipality of Delft. Compared to the previous quarter, 24.3% fewer homes were sold. The average sales price in the first quarter of 2020 is € 315,100. Vs. a year ago this is a price increase of 4.4% and a price decrease of 3.5% compared to the previous quarter. The average sales time in the 1st quarter 2020 is 45 days versus 38 days compared to a year ago.
In the Municipality of Rijswijk, the number of sales increased by 6.3% (112 homes) compared to the first quarter of 2019, and 16.1% fewer homes were sold compared to the previous quarter. Prices compared to a year ago increased by 14.2% and increased by 8.1% compared to the previous quarter. The average transaction price is currently € 313,500. The average sales time is 49 days versus 48 days compared to a year ago.
In the Municipality of Pijnacker-Nootdorp, the number of sales decreased by 5.4% (81 homes) compared to the first quarter of 2019, and 29.9% fewer homes were sold compared to the previous quarter. Prices compared to a year ago increased by 5.1% and decreased by 2.2% compared to the previous quarter. The average transaction price is currently € 398,300. The average sales time is 32 days versus 31 days compared to a year ago.
Friendly greetings from your local broker
(Register Broker & Appraiser for residential and commercial properties)