House Price Trends in Q2; How Is the Amsterdam Housing Market Performing?

The second-quarter housing price figures have been released. Even before they were announced, we already knew what to expect. You don’t have to be an expert to conclude that housing prices in the Netherlands have continued to rise recently. But what exactly did the trend in housing prices look like in the Amsterdam housing market during the second quarter of 2021?

House price trends: Are we seeing another rise?

Yes! In the Netherlands, home prices in May were, on average, 12.9% higher than in May of last year. This marks the largest increase since April 2001. Yet another record, even though the increase in the preceding months was already exceptional! 

What is the situation in Amsterdam? Looking at Amsterdam as a whole, prices per square meter are 6.3% higher than a year ago. 

People are competing fiercely, driving prices ever higher. We are seeing an increase in viewings, as well as unprecedentedly high bids. While the average transaction price across Amsterdam was €573,246 in Q1, it rose to €608,805 in Q2.

More bidding wars in Q2 2021 on the Amsterdam housing market

Just like home prices, average bid premiums are also on the rise. There were more bid premiums in Q2 2021 than in Q1 2021. The average bid premium in Amsterdam rose from 107.2% to 110.2%. That’s an increase of no less than 3%! 

There is a noticeable difference between homes built before the war and those built after the war. Average prices per square meter vary by construction period. The price for an existing home built before the war is significantly higher. 

In the second quarter of 2021, the average price of a pre-war home in Amsterdam was €719,846. The average price of a post-war home in the second quarter was €488,374. 

There is virtually no difference in the level of overbidding for pre-war and post-war homes. In the second quarter of 2021, the overbid rate was 110.5% for pre-war homes, compared to 110.1% for newer existing homes. 

The size of the home also plays a role. Across Amsterdam, the highest number of overbids are on homes between 40 and 60 square meters, and the fewest are on homes larger than 100 square meters. 

From the city to the countryside

In general, prices in Amsterdam are still higher than in the rest of the Netherlands. In Amsterdam, you pay a higher price per square meter than elsewhere in the country. This has led people to put their homes up for sale. 

We’re seeing people leave Amsterdam because they’re looking for more space. It’s cheaper elsewhere than in Amsterdam. The rise in remote work is contributing to this trend. People are currently less concerned about living farther away from work. 

Should I buy or sell a house now?

Contrary to many predictions, the coronavirus crisis has not yet led to a housing crisis. In fact, the number of home sales has increased. In the Netherlands, we saw the number of home sales rise by 4% (source: NVM). 

The number of transactions in the Amsterdam housing market has declined slightly. Across Amsterdam, there were 2,694 transactions in the first quarter of 2021, and 2,429 in the second quarter. 

Are you thinking about buying or selling your home?

Buying and/or selling a home is still possible. The number of homes sold is on the rise despite the impact of the COVID-19 crisis. And we’d be happy to help you with that. 

Our real estate agents are here to help you with your purchase or sale and to take the right steps. If you’d like to sell your home, we’ll find potential buyers for you. Looking to buy a home? We’ll work with you to find suitable properties!

Feel free to contact us for more information.