The financial crisis in the autumn of 2008 ended a long period of rising house prices. These reached their all-time high in August 2008. House prices crashed between August 2008 and the end of September 2009. Since then house prices have remained fairly stable. In September 2010 house prices were more than 6 percent below the level of August 2008.
Price index of existing own homes
Falling house prices in all provinces for all types of dwellings
House prices fell in all provinces, but the differences were great. House prices in Zeeland fell by only 1.7 percent between August 2008 and the end of September 2010. In North Holland prices fell fastest, namely by 7.7 percent. Then again, house prices in North Holland also rose fastest in the period before August 2008.
Since prices started to fall in August 2008 all types of dwellings dropped in price. Detached housing lost most of their value, which decreased by 8.5 percent. Owners of terraced houses were luckier than most, as the price of these dwellings fell by 5.4 percent.
Price changes of existing own homes, August 2008 – September 2010
The number of transactions is also not recovering
The price drop in 2009 went hand in hand with the dip in transactions on the housing market. The Land Registry recorded over 137 thousand transaction in the first three quarters of 2008. In the same period of 2009 close to 91 thousand dwelling changed owner. This is a 34 percent dip. The number of transactions in the first nine months of 2010 was just a fraction higher than the year before, namely 92 thousand.
Existing own homes sold in the first three quarters
Henny Floor and Peter Hein van Mulligen