Amsterdam Housing Market Statistics

Amsterdam home prices: first decline since 2013

Data reports from Amsterdam At Home Makelaars show that in the first quarter of 2019, home prices fell for the first time since 2013.

Average prices per square meter in the municipality of Amsterdam have fallen by 2.5% compared to Q4 2018. The average transaction price has fallen by 5%. The number of transactions has also declined again compared to Q1 2018. Prices did rise in the last two quarters of 2018, but at a much slower pace than before. Only time will tell whether this is the beginning of a correction or a temporary dip.

Consumer confidence is negative

Wouter Thöne, director at Amsterdam At Home Makelaars, has noticed a decline in interest in homes for sale since the end of the summer. Fewer people are signing up for viewings, and the number of offers is decreasing overall. Consumer confidence (CBS) has also been falling since its peak in July 2018 and turned negative for the first time in February. The index has stood at minus 4 since March 21, 2019. The mood in Amsterdam’s housing market is thus keeping pace with consumer confidence. The question is why consumer confidence is falling; inflation is at 2.5%, and unemployment and mortgage rates are at historically low levels. Of course, there is concern about Brexit, the unpredictability of Trump, and uncertainty regarding the costs and approach to the climate and energy transition. Yet the decline in consumer confidence remains surprising.

Amsterdam Housing Market: Expanding or Building Instead of Moving

Wouter Thöne believes the price increase is now coming to an end: “Our data reports, which we make available on makelaaramsterdam.nl, show that for up to €250,000 within the ring road, only studios of approximately 30 square meters are still available for purchase. For a first-time buyer, even the smallest apartment is already too expensive. A family with one child looking to move from a 55-square-meter two-bedroom apartment to a 100-square-meter apartment or house must pay at least €650,000 within the ring road. Most people do not have the means to take the next step. Homeowners are therefore stuck in apartments and houses that have actually become too small, resulting in limited mobility. This is also one of the reasons behind the construction boom. It is more feasible to add square footage than to move!”

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