Prices of existing owner-occupied dwellings sold in January 2013 were on average 9.6 percent lower than in January 2012, the most substantial price drop relative to twelve months previously since the price index of existing residential property was first recorded in 1995. This is probably due to the introduction of new mortgage regulations effective from 1 January 2013. The index – a joint publication by Statistics Netherlands and the Land Registry Office – reflects price changes of existing owner-occupied dwellings in the Netherlands sold to private individuals.
Prices of existing own homes
New mortgage regulations were introduced on 1 January 2013. Presumably, many house buyers have taken advantage of the possibility to avoid the new regulations by taking out their mortgage prior to 1 January 2013. This resulted in a higher demand for residential property at the end of last year. More houses were sold. During the last four months of 2012, prices remained more or less at the same level.
Prices of existing owner-occupied dwellings sold in January 2013 were at the same level as in the spring of 2003. They were more than 19 percent down from August 2008, when house prices reached a record high.
In the first month of this year, a total of 6,260 house sales were registered. House sales dropped nearly 12 percent below the level of January 2012.
Price index of existing own homes
For more information on economic indicators, see the Economic Monitor.